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GST Amendment

  • Article 366: Addition of Important Definitions
  • Article 269A: Levy and Collection of GST on Inter-State Supply
  • Article 279A: GST Council
  • Article 286: Restrictions on Tax Imposition
  • Article 366: Addition of Important Definitions

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The Indian Constitution provides for taxation powers through the Union List and State List, granting the Centre and States separate powers to levy taxes. Since GST (Goods and Services Tax) needed to be uniform across the Centre and States, it required a constitutional amendment to provide both the Centre and States the authority to levy and collect GST.

 

This amendment ensured consistency in GST laws across Central and State/Union Territory Legislatures.

 

“TaxGuider guides in the latest Act, which resulted in the insertion, deletion, and amendment of certain Articles of the Constitution.”

Key Amendments to the Constitution for GST Implementation

The introduction of GST led to the insertion, deletion, and amendment of several Articles in the Indian Constitution.

Important GST-Related Constitutional Articles

  • Article 246A: Special Provision for GST
    → Grants simultaneous powers to both the Centre and States to levy and collect GST.
  • Article 269A: Levy and Collection of GST on Inter-State Supply
    → Specifies that GST on inter-state supplies (IGST) shall be levied and collected by the Centre but shared between the Centre and the States.
  • Article 279A: GST Council
    → Establishes the GST Council, which is responsible for making recommendations on tax rates, exemptions, and other GST policies.
  • Article 286: Restrictions on Tax Imposition
    → Prohibits States from imposing taxes on the sale or purchase of goods and services beyond State boundaries.
  • Article 366: Addition of Important Definitions
    → Defines terms such as “Goods and Services Tax”, “Supply,” and other GST-related concepts to ensure legal clarity.

What Does the Seventh Schedule State?

The Seventh Schedule of the Indian Constitution, under Article 246, categorizes subjects into three lists that define the authority of the Union and State Governments to legislate on different matters.

 

List – I: Union List

  • Contains subjects on which only the Parliament (Central Government) has exclusive power to make laws.

 

List – II: State List

  • Contains subjects on which only the State Governments have the power to legislate.

 

List – III: Concurrent List

  • Contains subjects on which both the Union and State Governments can make laws.
  • However, in case of a conflict, the Union law prevails over State law.

Frequently Asked Question

1. Can GST Registration be amended after migration from VAT/Service Tax?

  • Yes, GST details can be updated even after migration from VAT/Service Tax to ensure correct taxpayer information.

2. What are the penalties for not updating GST details?

  • Mismatched details may lead to rejection of GST returns.
  • Incorrect GST filings can result in notices and penalties.
  • Failure to update address may impact GST input tax credit (ITC) claims.

3. Can a GST Amendment be rejected?

  • Yes, if incorrect documents or information are submitted.
  • GST Officer may reject an application if supporting documents are missing.

Solution: Submit proper documents and reapply within the given timeframe.

4. Can I change my GST State under GST Amendment?

  • No, a new GST registration must be obtained for a different state.
  • GST is state-wise; businesses must apply for a fresh GSTIN if relocating to another state.