2017 · Q112
Why was constitutional amendment needed for introducing GST ?
General KnowledgeIndian Polity and Governance
- AStates were not willing to agree with the Union for introduction of GST without amendment in the Constitution.
- BGST was to be implemented on concurrent base and Article 246 was inadequate for such a case.
- CThe Empowered Committee of Finance Ministers had recommended for constitutional amendment.
- DThe GST Council had recommended for constitutional amendment so that its power enhances.
Explanation
The Goods and Services Tax required the 101st Constitutional Amendment because the Seventh Schedule split taxation powers between the Union and the States, and Article 246 did not permit both to levy a unified tax on goods and services concurrently. The amendment inserted Articles 246A, 269A and 279A (the GST Council) to enable concurrent taxation. The need for a constitutional amendment is therefore the correct answer.