Sunday, 23 January 2022



Power to levy and collect taxes whether or not, direct or indirect emerges from the Constitution of India. just in case any law, be it an act, rule, notification or order isn't in conformity with the Constitution, it's referred to as ultra vires the Constitution and is unlawful and void.

Article 265 of the Constitution of India prohibits impulsive assortment of tax. It states that “no tax shall be levied or collected except by authority of law”. The term “authority of law” suggests that tax planned to be levied should be at intervals the legislative competency of the general assembly imposing the tax.

Power to levy product and Services Tax (GST) has been presented by Article 246A of the 

Constitution that was introduced by the Constitution (101st Amendment) Act, 2016.

Need for modification

The Constitutional provisions til now had pictured separate powers for the Centre and also the 

States to impose varied taxes. Whereas the Centre levied excise duty on all product made or factory-made in India, the States levied price intercalary Tax once the products entered the stream 

of trade upon completion of manufacture. 

In the case of inter-State sales, the Centre had the facility to levy a tax (the Central Sales Tax), 

but the tax was collected and preserved entirely by the States. Services were completely taxed 

by the Centre at the side of applicable cesses, if any. 

Besides, there have been State specific levies like entry tax, Octroi, luxury tax, amusement tax, 

lottery and indulgent tax, native taxes levied by Panchayats etc. With relevance merchandise foreign 

from outside the country into Asian nation, Centre levied basic duty and extra duties of 

customs at the side of applicable cesses, if any. 

Introduction of the GST needed modification within the Constitution thus on modify integration of 

the central excise duty together with extra duties of customs, State VAT and bound State 

specific taxes and repair tax levied by the Centre into a comprehensive merchandise and Services 

Tax and to empower each Centre and therefore the States to levy and collect it. Consequently, 

Constitution (101st modification Act), 2016 (hereinafter spoken as Constitution 

Amendment Act) was passed. it's twenty sections. new inserted Article 279A empowering 

President to represent GST Council was notified on 12.09.2016. Remaining provisions were 

notified with result from 16.09.2016.


• Article 246A: Power to form laws with relevance merchandise and Services Tax.This article grants power to Centre and State Governments to form laws with respect 

to GST obligatory by Centre or such State. Centre has the exclusive power to form laws 

with relevance GST just in case of inter-State offer of products and/or services.

• Article 269A: Levy and assortment of GST on inter-State offer

Article 269A stipulates that GST on provides within the course of inter-State trade or 

commerce shall be levied and picked up by the govt. of Asian nation and such tax shall 

be doled out between the Union and therefore the States within the manner as is also provided by 

Parliament by law on the recommendations of the products and Services Tax Council. In 

addition to higher than, import of products or services or each into India will be deemed to 

be offer of products and/ or services within the course of Inter-State trade or Commerce.

• Article 366: Definitions of ‘Goods and Services Tax’, ‘Services’ and ‘State’ 

Goods and services tax suggests that any tax on offer of products, or services or each except 

taxes on the availability of the alcoholic liquor for human consumption. Consequently, GST 

can be levied on offer of all merchandise and services except alcoholic liquor for human 


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