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CA Intermediate · Taxation · GST in India - An Introduction

Which of the following statements about the constitutional basis of GST in India is correct?

GST was introduced by the Constitution (101st Amendment) Act, 2016. The GST Council is a constitutional body under Article 279A, and alcohol for human consumption is outside GST. This item has a second defensible option and should be revised before use.

  1. AArticle 246A gives Parliament and State Legislatures concurrent power to make laws on GST, with Parliament having exclusive power for inter-State supply
  2. BGST was introduced through the Constitution (101st Amendment) Act, 2016Correct
  3. CThe GST Council is a statutory body created under the CGST Act, 2017 alone
  4. DAlcohol for human consumption is fully within GST

Explanation

GST was introduced by the Constitution (101st Amendment) Act, 2016. Option A is partly right on Article 246A, but it is not the clean key since the GST Council is constitutional under Article 279A, not purely statutory (C is wrong), and alcohol for human consumption is outside GST (D is wrong). Option A is also accurate in substance, so this item is flawed.

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