A section wise study of amended provision

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Section No Issue involve After amendment effect
Section 1
  • Short title of the amendment
  • Commencement of the amendment
  • The date when these amendment will become applicable.
The central government in exercise of power given under section 1(2) of the amendment appointed the 16th September 2016 as the date on which all provisions of this amendment would become applicable.
Section 2 New article 246 A inserted This is the enabling provision of GST regime. Thus, CGST and SGST shall be made by Central Government and state Government respectively and IGST shall be made by central government only.
Section 3 Article 248 amended  
Section 4 Article 249 amended This section enables Parliament to make laws in national interest, if so required as per the procedure laid therein.
Section 5 Article 250 amended This provides that Union government may legislate as in other cases if a proclamation of emergency is in operation.
Section 6 Article 268 amended In view of the proposed introduction of GST the duties of excise on medical and toilet preparations needs to be withdrawn the purview of the power of the central government.
Section 7 Article 269 amended With this amendment it is possible that IGST is levied and collected by union government and assigned to state government in the manner as provide in the laws made is this behalf by parliament.
Section 9 Article 269A inserted It gives power to union government to impose, collect and apportion IGST.

Further it provides that supply of goods and / or services in the course import into India shall be deemed to be in the course inter state trade or commerce.

Section 10 Article 270 amended It enables distribution of tax collected by central government.
Section 11 Article 271 amended No surcharge shall be levied on GST.
Section 12 Article 279A inserted Give power to president to constitute GST council and statutory power of the council.
Section 13 Article 286 amended Consequential amendment
Section 14 Article 366 amended Define Goods and Service Tax, Service and state
Section 15 Article 368 amended Provide special procedure to amend bill.
Section 16 6th schedule amended  
Section 17 7th schedule amended  
Section 18 Compensation for loss of revenue The present section provides for the Mandatory Compensation to States for 5 years for loss of revenue on account of introduction of goods and services tax.

The present Constitutional amendment Act has deleted the provisions for the applicability of 1% additional tax on inter state transactions.

Section 19 Transitional provisions This section prescribe a timeframe of 1 year within which the subsuming of different indirect taxes into GST would take place and enable the competent Legislature to amend or repeal their existing laws to pave the way for imposition of SGST in the States.
Section 20 Power of president Power to president to remove difficulties.

Thus, the impact of above amendment is as below:

1. Paves the way to levy and collect tax on same goods and / or services simultaneously by central government and the state government – The Central GST and the State GST would be levied simultaneously on every transaction of supply of goods and services except the exempted goods and services, goods which are outside the purview of GST and the transactions which are below the prescribed threshold limits.

2. Formation for GST council and give it a statutory validity.