Constitution 101st Amendment Act, 2016

The Constitution 101st Amendment Act has received presidential assent on 8th September 2016. This act paves the way for introduction of Goods & Services Tax (GST) by making Special provision with respect to goods and services tax.

Important Provisions

Article 264 & 293 are related to the financial relations between the Union and the State Governments. Since, the state Governments have their interests in GST, the implementation of GST cannot take place without amendment of the Indian Constitution. For this purpose, Constitution (101st Amendment) Bill, 2016 has been passed. This amendment has made the following changes:

Introduced new Article 246A

This articles provides that both parliament and state legislatures shall have concurrent powers to make laws with respect to goods and services tax (GST). The Parliament will retain exclusive power to legislate on inter-state trade or commerce.

Introduced Article 269A

In case of the inter-state trade, the tax will be levied and collected by the Government of India and shared between the Union and States as per recommendation of the GST Council.

Introduced Article 279A

This article provides for constitution of a GST council by president within sixty days from this act coming into force.

Other Important amendments in existing articles

  • The residuary power of legislation of Parliament vi article 248 is now subject to article 246A.
  • Article 249 has been changed so that if 2/3rd majority resolution is passed by Rajya Sabha, the Parliament will have powers to make necessary laws with respect to GST in national interest.
  • Article 250 has been amended so that parliament will have powers to make laws related to GST during emergency period.
  • Article 268 has been amended so that excise duty on medicinal and toilet preparation will be omitted from the state list and will be subsumed in GST.
  • Article 268A has been repealed so now service tax is subsumed in GST.
  • Article 269 would empower the parliament to make GST related laws for inter-state trade / commerce.

Last Updated: September 12, 2016