Analysis of Proposed 122nd Constitutional Amendment – Goods & Service Tax (GST) bill

Insertion of New Articles

1) Article 279A – Goods and Services Tax Council

2) Article 246A – Special Provision with Respect to Goods and Services Tax

3) Article 269A – Levy and Collection of Goods and Services Tax in course of Inter-State Trade or Commerce

Amendment to Existing Articles

1) Article 248 Residuary powers of legislation

2) Article 249 Power of Parliament to Legislate with respect to a matter in the State List in the National Interest

3) Article 250 Power of Parliament to Legislate with respect to any matter in the State List if a Proclamation of Emergency is in Operation

4) Article 268 Duties levied by the Union but collected and appropriated by the States

5) Article 269 Taxes levied and collected by the Union but assigned to the States

6) Article 270 Taxes levied and distributed between the Union and the States

7) Article 271 Surcharge on certain duties and taxes for purposes of the Union

8) Article 286 Restrictions as to imposition of tax on the Sale or Purchase of Goods

9) Article 366 Meaning of Goods and Services Tax(GST) & Services

10) Article 368 Power of Parliament to amend the Constitution and procedure therefore

11) Amendment to Sixth Schedule to the Constitution

12) Amendment to Seventh Schedule to the Constitution

Omission of Articles

Article 268A Service tax levied by Union and collected and appropriated by the Union and the States

Arrangement for assignment of additional tax on supply of goods to States for two years or such other period recommended by the Council.

Compensation to States for loss of revenue on account of introduction of goods and services tax

Transitional Provisions

Power of President to Remove Difficulties


Speech by the Minister of Finance Arun Jaitley in Lok Sabha on 122nd Amendment of the Constitution – GST Bill 2014


Arun Jaitely,Minister of Finance

There are two important points which I want to make in response to the Members. Any Bill can be opposed if it lacks either legislative competence of the Parliament or if it violates fundamental rights in the context of an ordinary legislation and basic structure as far as the constitution amendment is concerned.None of the objections come within that parameter.

Let me remind the hon. Members that this Bill has earlier been introduced and cleared by the Standing Committee. The object behind the GST is to have a seamless transfer of goods and services across the country.

Let there be no tax on tax. On the destination principle, the tax is at the last stage.

The Standing Committee has cleared it and was discussed repeatedly, the former Finance Minister discussed it repeatedly with the Empowered Committee and the State Governments.

I have met several Chief Ministers and Finance Ministers and discussed this issue with them individually also. A smaller group came and met me, which comprised of people from various political parties. They wanted some change in the language which was to give more liberal rights to the States. I acknowledged that request. We have made sure that no State will lose a rupee of revenue.

Service tax is entirely in the domain of the Centre today. It is going to be shared with States now. From 2010 to 2013, the CST compensation which was payable to the States, amongst the various debts which have been left behind on my table by the UPA, this is one of them. They have not paid.

I will try to pay in this financial year itself. We will make sure that no State loses. We are interested in strengthening the States because then only the national economy will be strengthened. The Government will be open to all suggestions till the very last minute.

Just as in the case of VAT which was the fear of the unknown that will go down, the Centre benefited, the States benefited. We will address the concerns of each State. We will ensure that their rights are preserved. No State is a loser.