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TMI BlogConstitutional amendment-122nd _Existing clauses v Amended clauses/ omitted clausesX X X X Extracts X X X X X X X X Extracts X X X X ..... Constitutional amendment-122nd _Existing clauses v Amended clauses/ omitted clauses - By: - Deepak Aggarwal - Goods and Services Tax - GST - Dated:- 24-12-2014 - - THE CONSTITUTION (122 nd AMENDMENT) BILL, 2014 It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the commencement of that provision. (Refer Italic portion for changes) Insertion of new article 246A (Main provision inserted for GST) Special provision with respect to goods and services tax Subject to below clause, the Legislature of every State, have power to make laws with respect to goods and services tax imposed by the Union or by such State. Parliament has exclusive power to make laws with respect to goods and services tax where the supply of goods, or of services, or both takes place in the course of inter-State trade or commerce. Amendment of article 248 Existing clause : Parliament has exclusive power to make ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any law with respect to any matter not enumerated in the Concurrent List or State List Amended clause : Parliament subject to article 246A has exclusive power to make any law with respect to any matter not enumerated in the Concurrent List or State List Amendment of article 249 Existing clause : Notwithstanding anything in the foregoing provisions of this Chapter, if the Council of States has declared by resolution supported by not less than two-thirds of the members present and voting that it is necessary or expedient in the national interest that Parliament should make laws with respect to any matter enumerated in the State List specified in the resolution, it shall be lawful for Parliament to make laws for the whole or any part of the territory of India with respect to that matter while the resolution remains in force. Amended clause : Notwithstanding anything in the foregoing provisions of this Chapter, if the Council of States has declared by resolution supported by not less than two-thirds of the members present and voting that it is necessary or expedient in the national interest that Parliament should make laws with respect to goods and services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax provided under article 246A or any matter enumerated in the State List specified in the resolution, it shall be lawful for Parliament to make laws for the whole or any part of the territory of India with respect to that matter while the resolution remains in force. Amendment of article 250 Existing clause : Notwithstanding anything in this Chapter. Parliament shall, while a Proclamation of Emergency is in operation, have power to make laws for the whole or any part of the territory of India with respect to any of the matters enumerated in the State List. Amended clause : Notwithstanding anything in this Chapter. Parliament shall, while a Proclamation of Emergency is in operation, have power to make laws for the whole or any part of the territory of India with respect to goods and services tax provided under article 246A or any of the matters enumerated in the State List. Amendment of article 268 Existing clause : Such stamp duties and such duties of excise on medicinal and toilet preparations as are mentioned in the Union List shall be levied by the Government of India but shall be collected-(a) in the case where such duties are leviable w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ithin any Union territory, by the Government of India, and (b) in other cases, by the States within which such duties are respectively leviable. Amended clause : Such stamp duties and such duties of excise on medicinal and toilet preparations as are mentioned in the Union List shall be levied by the Government of India but shall be collected-(a) in the case where such duties are leviable within any Union territory, by the Government of India, and (b) in other cases, by the States within which such duties are respectively leviable. Omission of article 268A Omitted Clause : (1)Taxes on services shall be levied by the Government of India and such tax shall be collected and appropriated by the Government of India and the States, in the manner provided in clause (2). (2) The proceeds in any financial year of any such tax levied in accordance with the provisions of clause (I) shall be- (a) collected by the Government of India and the States; (b) appropriated by the Government of India and the States, in accordance with such principles of collection and appropriation as may be formulated by Parliament by law. Amendment of article 269 Existing clause : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1) Taxes on the sale or purchase of goods and taxes on the consignment of goods shall be levied and collected by the Government of India but shall be assigned and shall be deemed to have been assigned to the States on or after the 1st day of April, 1996 in the manner provided in clause (2). Explanation.-For the purposes of this clause,- (a) the expression taxes on the sale or purchase of goods shall mean taxes on sale or purchase of goods other than newspapers, where such sale or purchase takes place in the course of inter-State trade or commerce; (b) the expression taxes on the consignment of goods shall mean taxes on the consignment of goods (whether the consignment is to the person making it or to any other person), where such consignment takes place in the course of inter-State trade or commerce. Amended clause : (1) Taxes on the sale or purchase of goods and taxes on the consignment of goods except as provided in article 269A shall be levied and collected by the Government of India but shall be assigned and shall be deemed to have been assigned to the States on or after the 1st day of April, 1996 in the manner provided in clause (2). Explanation.-For the purposes o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f this clause,- (a) the expression taxes on the sale or purchase of goods shall mean taxes on sale or purchase of goods other than newspapers, where such sale or purchase takes place in the course of inter-State trade or commerce; (b) the expression taxes on the consignment of goods shall mean taxes on the consignment of goods (whether the consignment is to the person making it or to any other person), where such consignment takes place in the course of inter-State trade or commerce. Insertion of new article 269A Levy and collection of goods and service tax in course of interstate trade or commerce Goods and services tax on supplies in the course of inter-State trade or commerce shall be levied and collected by the government of India and such tax shall be apportioned between the Union and the States in the manner as may be provided by Parliament by law on the recommendations of the Goods and Services Tax Council. Explanation.--For the purposes of this clause, supply of goods, or of services, or both in the course of import into the territory of India shall be deemed to be supply of goods, or of services, or both in the course of inter-State trade or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... commerce. Parliament may, by law, formulate the principles for determining the place of supply, and when a supply of goods, or of services, or both takes place in the course of inter-State trade or commerce. . Amendment of article 270 Existing clause : (1) All taxes and duties referred to in the Union List, except the duties and taxes referred to in articles 268 , 268A and 269 , respectively, surcharge on taxes and duties referred to in article 271 and any cess levied for specific purposes under any law made by Parliament shall be levied and collected by the Government of India and shall be distributed between the Union and the States in the manner provided in clause (2). Amended clause : (1) All taxes and duties referred to in the Union List, except the duties and taxes referred to in articles 268 , 268A and , 269 and article 269A , respectively, surcharge on taxes and duties referred to in article 271 and any cess levied for specific purposes under any law made by Parliament shall be levied and collected by the Government of India and shall be distributed between the Union and the States in the manner provided in clause (2). (1A) The goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and services tax levied and collected by the Government of India, except the tax apportioned with the States under clause (I) of article 269A, shall also be distributed between the Union and the States in the manner provided in clause (2). Amendment of article 271 Existing clause : Notwithstanding anything in articles 269 and 270 . Parliament may at any time increase any of the duties or taxes referred to in those articles by a surcharge for purposes of the Union and the whole proceeds of any such surcharge shall form part of the Consolidated Fund of India. Amended clause Notwithstanding anything in articles 269 and 270 . Parliament may at any time increase any of the duties or taxes referred to in those articles except the goods and services tax under article 246A by a surcharge for purposes of the Union and the whole proceeds of any such surcharge shall form part of the Consolidated Fund of India. Insertion of new article 279 A (1) The President shall, within sixty days from the date of commencement of the Constitution (One Hundred and Twenty-second Amendment) Act, 2014, by order, constitute a Council to be called the Goods and Services T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Council. (2) The Goods and Services Tax Council shall consist of the following members, namely:--- (a) the Union Finance Minister Chairperson; (b) the Union Minister of State in charge of Revenue or Finance ..Member; (c) the Minister in charge of Finance or Taxation or any other Minister nominated by each State Government Members. (3) The Members of the Goods and Services Tax Council referred to in sub-clause (c) of clause (2) shall, as soon as may be, choose one amongst themselves to be the Vice-Chairperson of the Council for such period as they may decide. (4) The Goods and Services Tax Council shall make recommendations to the Union and the States on- (a) the taxes, cesses and surcharges levied by the Union, the States and the local bodies which may be subsumed in the goods and services tax; (b) the goods and services that may be subjected to, or exempted from the goods and services tax; (c) model Goods and Services Tax Laws, principles of levy, apportionment of integrated Goods and Services Tax and the principles that govern the place of supply; (d) the threshold limit of turnover below which good ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and services may be exempted from goods and services tax; (e) the rates including floor rates with bands of goods and services tax; (f) any special rate or rates for a specified period, to raise additional resources during any natural calamity or disaster; (g) special provision with respect to the States of Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur; Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand; and (h) any other matter relating to the goods and services tax, as the Council may decide. (5) The Goods and Services Tax Council shall recommend the date on which the goods and services tax be levied on petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel. (6) While discharging the functions conferred by this article, the Goods and Services Tax Council shall be guided by the need fora harmonised structure of goods and services tax and for the development of a harmonised national market for goods and services. (7) One half of the total number of Members of the Goods and Services Tax Council shall constitute the quorum at its meetings. (8) The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Goods and Services Tax Council shall determine the procedure in the performance of its functions. (9) Every decision of the Goods and Services Tax Council shall be taken at a meeting, by a majority of not less than three-fourths of the weighted votes of the members present and voting, in accordance with the following principles, namely: (a) the vote of the Central Government shall have a weightage of one-third of the total votes cast, and (b) the votes of all the State Governments taken together shall have a weightage of two-thirds of the total votes cast, in that meeting. (10) No act or proceedings of the Goods and Services Tax Council shall be invalid merely by reason of- (a) any Vacancy in, or any defect in, the constitution of the Council: or (b) any defect in the appointment of a person as a member of the Council; or (c) any procedural irregularity of the Council not affecting the merits of the case. (11) The Goods and Services Tax Council may decide about the modalities to resolve disputes arising out of its recommendation. . Amendment of article 286 Existing clause : (1) No law of a State shall impose, or authorise the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imposition of a tax on the sale or purchase of goods where such sale or purchase takes place-- (a) outside the State; or (b) in the course of the import of the goods into, or export of the goods out of, the territory of India. (2) Parliament may by law formulate principles for determining when a sale or purchase of goods takes place in any of the ways mentioned in clause (I). (3) Any law of a State shall, in so far as it imposes, or authorises the imposition of,- (i) a tax on the sale or purchase of goods declared by Parliament by law to be of special importance in inter-State trade or commerce; or (b) a tax on the sale or purchase of goods, being a tax of the nature referred to in sub-clause (b), sub-clause (c) or sub-clause (d) of clause (29A) of article 366, be subject to such restrictions and conditions in regard to the system of levy, rates and other incidents of the tax as Parliament may by law specify. Amended clause: (1) No law of a State shall impose, or authorise the imposition of a tax on the supply of goods or of services or both, where such supply takes place the sale or purchase of goods where such sale or purchase takes place -- (a) outside the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... State; or (b) in the course of the import of the goods goods or services or both into, or export of the goods goods or services or both out of, the territory of India. (2) Parliament may by law formulate principles for determining when a sale or purchase of goods takes place supply of goods or of services or both in any of the ways mentioned in clause (I). (3) Any law of a State shall, in so far as it imposes, or authorises the imposition of,- (i) a tax on the sale or purchase of goods declared by Parliament by law to be of special importance in inter-State trade or commerce; or (b) a tax on the sale or purchase of goods, being a tax of the nature referred to in sub-clause (b), sub-clause (c) or sub-clause (d) of clause (29A) of article 366, be subject to such restrictions and conditions in regard to the system of levy, rates and other incidents of the tax as Parliament may by law specify . Amendment of article 366 Existing clause : (12) goods includes all materials, commodities, and articles;. Amended clause: (12) goods includes all materials, commodities, and articles; (12A) goods and services tax means any t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax on supply of goods or services or both except taxes on the supply of the alcoholic liquor for human consumption ; Existing clause : (26) securities includes stock; Amended clause: (26) securities includes stock; (26A) Services means anything other than goods: (26B) State with reference to articles 246A, 268 . 269 , 269A and article 279A includes a Union territory with Legislature Amendment of article 368 Existing clause : (2) An amendment of this Constitution may be initiated only by the introduction of a Bill for the purpose in either House of Parliament, and when the Bill is passed in each House by a majority of the total membership of that House and by a majority of not less than two-thirds of the members of that House present and voting, it shall be presented to the President who shall give his assent to the Bill and thereupon the Constitution shall stand amended in accordance with the terms of the Bill: Provided that if such amendment seeks to make any change in- (a) article 54 , article 55 , article 73 , article 162 or article 241 , or (b) Chapter IV of Part V, Chapter V of Part VI, or Chapter I of Part Xl. or (c) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any of the Lists in the Seventh Schedule , or (d) the representation of States in Parliament, or (e) the provisions of this article, the amendment shall also require to be ratified by the Legislatures of not less than one-half of the States by resolutions to that effect passed by those Legislatures before the Bill making provision for such amendment is presented to the President for assent. Amended clause: (2) An amendment of this Constitution may be initiated only by the introduction of a Bill for the purpose in either House of Parliament, and when the Bill is passed in each House by a majority of the total membership of that House and by a majority of not less than two-thirds of the members of that House present and voting, it shall be presented to the President who shall give his assent to the Bill and thereupon the Constitution shall stand amended in accordance with the terms of the Bill: Provided that if such amendment seeks to make any change in- (a) article 54 , article 55 , article 73 , article 162 or article 241 article 162, article 241 or article 279A, or (b) Chapter IV of Part V, Chapter V of Part VI, or Chapter I of Part Xl. or (c) an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of the Lists in the Seventh Schedule, or (d) the representation of States in Parliament, or (e) the provisions of this article, the amendment shall also require to be ratified by the Legislatures of not less than one-half of the States by resolutions to that effect passed by those Legislatures before the Bill making provision for such amendment is presented to the President for assent.. Amendment of Sixth Schedule Existing Schedule: 8 (3) The District Council for an autonomous district shall have the power to levy and collect all or any of the following taxes within such district, that is to say (c) taxes on the entry of goods into a market for sale therein, and tolls on passengers and goods carried in ferries; and (d) taxes for the maintenance of schools dispensaries or roads. Amended Schedule: 8 (3) The District Council for an autonomous district shall have the power to levy and collect all or any of the following taxes within such district, that is to say (c) taxes on the entry of goods into a market for sale therein, and tolls on passengers and goods carried in ferries; and (d) taxes for the maintenance of schools dispensaries or ro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ads and (e) taxes on entertainment and amusements. Amendment of Seventh Schedule Existing Schedule: 17) List I- Union List 84. Duties of excise on tobacco and other goods manufactured or produced in India except-- (a) alcoholic liquors for human consumption (b) opium Indian hemp and other narcotic drugs and narcotics, but including medicinal and toilet preparations containing alcohol or any substance included in sub-paragraph (b) of this entry. 92. Taxes on the sale or purchase of newspapers and on advertisements published therein. 92C. Taxes on services. List II State List 52. Taxes on the entry of goods into a local area for consumption, use or sale therein. 54. Taxes on the sale or purchase of goods other than newspapers, subject to the provisions of entry 92A of List I 55. Taxes on advertisements other than advertisements published in the newspapers and advertisements broadcast radio or television. 62. Taxes on luxuries, including taxes on entertainments, amusements, betting and gambling. Amended Schedule: List I- Union List 84. Duties of excise on tobacco and other goods manufactured or produced in India ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... except-- (a) alcoholic liquors for human consumption (b) opium Indian hemp and other narcotic drugs and narcotics, but including medicinal and toilet preparations containing alcohol or any substance included in sub-paragraph (b) of this entry. Duties of excise on the following goods manufactured or produced in India, namely:- (a) petroleum crude; (h) high speed diesel; (c) motor spirit (commonly known as petrol); (d) natural gas; (e) aviation turbine fuel: and (f) tobacco and tobacco products. : 92. Taxes on the sale or purchase of newspapers and on advertisements published therein . 92C. Taxes on services. List II State List 52. Taxes on the entry of goods into a local area for consumption, use or sale therein. 54. Taxes on the sale or purchase of goods other than newspapers, subject to the provisions of entry 92A of List I Taxes on the sale of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas, aviation turbine fuel and alcoholic liquor for human consumption, but not including sale in the course of inter-State trade or commerce or sale in the course of internat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ional trade or commerce of such goods. ; 55. Taxes on advertisements other than advertisements published in the newspapers and advertisements broadcast radio or television . 62. Taxes on luxuries, including taxes on entertainments, amusements, betting and gambling Taxes on entertainments and amusements to the extent levied and collected by a Panchayat or a Municipality or a Regional Council or District Council. . Arrangement for assignment of additional tax on supply of goods to States for two years or such other period recommended by the Council 18. (1) An additional tax on supply of goods, not exceeding one per cent. in the course of inter-State trade or commerce shall, notwithstanding anything contained in clause (I) of article 269A, be levied and collected by the Government of India for a period of two years or such other period as the Goods and Services Tax Council may recommend, and such tax shall be assigned to the States in the manner provided in clause (2). (2) The net proceeds of additional tax on supply of goods in any financial year, except the proceeds attributable to the Union territories, shall not form part of the Consolidated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Fund of India and be deemed to have been assigned to the States from where the supply originates. (3) The Government of India may, where it considers necessary in the public interest, exempt such goods from the levy of tax under clause (1). (4) Parliament may, by law, formulate the principles for determining the place of origin from where supply of goods take place in the course of inter-State trade or commerce. Compensation to States for loss of revenue on account of introduction of goods and services tax 19. Parliament may, by law, on the recommendation of the Goods and Services Tax, Council, provide for implementation of the goods and services tax for such period which may extend to five years. Transitional provisions 20. Notwithstanding anything in this Act, any provision of any law relating to tax on goods or services or on both in force in any State immediately before the commencement of this Act, which is inconsistent with the provisions of the Constitution as amended by this Act shall continue to be inforce until amended or repealed by a competent Legislature or other competent authority or until expiration of one year from such commenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ement, whichever is earlier. Power of President to remove difficulties 21. (1) If any, difficulty arises in giving effect to the provisions of the Constitution as amended by this Act (including any difficulty in relation to the transition from the provisions of the Constitution as they stood immediately before the date of assent of the President to this Act to the provisions of the Constitution as amended by this Act), the President may, by order, make such provisions, including any adaptation or modification of any provision of the Constitution as amended by this Act or law, as appear to the President to be necessary or expedient for the purpose of removing the difficulty: Provided that no such order shall be made after the expiry of three years from the date of such assent. (2) Every order made under sub-section (1) shall, as soon as may be after it is made, be laid before each House of Parliament. - - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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