Why Constitutional Amendment Bill for GST in India
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Why Constitutional Amendment Bill for GST in India

October 25, 2019


Hello friends Today we are going to discuss amendment in constitution for bringing GST Bill I’m your
friend CA Adarsh Madrecha So let’s get
started In India we have a federal system where the
Constitution provides list of powers for Center as well as state
government Article 246 distributes
legislative powers including taxation between Parliament of India and the state legislature and hence we have a list governing those. since we are discussing GST we shall
restrict the discussion to only indirect taxes. First is the union List which gives power to levy taxes such as Excise, Service Tax, sales tax on inter-state sale i.e. CST
Second is the State List which gives power to levy
taxes on sale of goods that is VAT, Taxes on goods entering City Limits on the Municipal Corporation i.e.
Entry Taxest such as LBT, Cess, Octroi, and Entertainment Tax Third is the Concurrent List where state as well as the Central government have power to
Make Law in India the taxes are predominantly placed Either in Union or the State List.
There is still few exception to this rule.
Like we have stamp duty in the Concurrent List
of course the stand duty here is attached do many if’s and but’s but next keep that for another discussion To give an idea about what the
Concurrent List has take an example of entry 30
in the Concurrent List which states “vital statistics including registration of both Birth’s and Deaths ” this Entry number 30 gives
Central Govt as well as the state government to collect statistics since we are on
statistics we have 100 entries in the Union List 61 in the State List and in 52 in the
Concurrent List Coming back to GST. Since GST bill will replace Excise, service tax, Sales Tax, Entry Tax, Entertainment Tax, and many other into a single in a single taxation.
we need to give these power to a single legislature so we
need to combine these Entries into a single List.
Suppose we shift the Entries from the State to the Union List This way we can have a GST bill but
States shall never agree with this the States shall say, thet are being ripped off of all their powers to levy and collect taxes. All right, So another solution will be to move the Union List and State List to
the concurrent List but here’s a Catch, The concurrent list gives overriding powers to the Parliament
over state Legislature. hence even though the states would have
the power but these powers shall be overridden if a law is enacted by the Parliament
So, you may ask what’s the solution for this problem?
Very simple. create another list where Center as well as
State government have equal power That’s exactly the plan which the
government is thinking a new article, Article 246A. government has come up with the 122nd
Constitution Amendment Bill which proposes to introduce this new
Article 246A to give powers to the Center as the
State To levy GST on manufacturing, Services,
Sale of Goods Entry of Goods entertainment Tax, Of Course
there are many many other indirect Taxes.
For complete list of taxes which I would be combine in GST watch Introduction on GST link in the description.
For discussion on What is there is this new Constitution Amendment bill Watch new Video. Link in descriptio.
Thanks This video was brought to you by Adi Publication A Madrecha Group Enterprise

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  1. Constitutional Amendment is necessary, to introduce new List of Powers for Center as well as State Govt. i.e. Article 246A

  2. During your slide show at one point u r saying that there are 100 entries in the Union List 61 in the State list and 42 in Concurrent List whereas u r picturising 52 instead of 42 in that slide show of Concurrent List. Try to clarify this. Thank you.

  3. Wow… are all your Indian states incapable of centralising power? What country, other than India, has to implement their taxation policy into their constitution? You do realise that any time the central government will seek to change its tax rates, it will require a constitutional amendment, meaning Jaitley will have to run across India to every state, getting their support for a simple change in tax rates.
    This is a very silly argument, you guys could do with us British presenting you with a new trade treaty, how is the BJP, a right-wing government, the one with the common sensical policy here? The ground for this decision are very poor, no offence Adi Publication, but if you think that implementing the GST into the constitution is a good idea, you are not thinking in regard to long-term gains.

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