GST - Constitution (One Hundred and Fifteenth Amendment) Bill, 2011
FINANCE Minister Pranab Mukherjee has etched a place for himself in the history of Indian Taxation by introducing the Bill to bring in GST. The Bill if passed will be known as the Constitution (One Hundred and Fifteenth Amendment) Act, 2011.
Salient Features:
A New Article 246A: Special provision with respect to goods and services tax. Notwithstanding anything contained in articles 246 and 254, Parliament and the Legislature of every State, have power to make laws with respect to goods and services tax imposed by the Union or by that State respectively :
Provided that 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.
Explanation. - For the purpose of this article, “State” includes a Union territory with Legislature .”
A New Article 279A:
Goods and Services Tax Council. - (1) The President shall, within sixty days from the date of commencement of the Constitution (One Hundred and Fifteenth Amendment) Act, 2011, by order, constitute a Council to be called the Goods and Services Tax 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 ... 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 Centre, 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) the threshold limit of turnover below which goods and services tax may be exempted;
(d) the rates of goods and services tax; and
(e) any other matter relating to the goods and services tax, as the Council may decide.
(5) While discharging the functions conferred by this article, the Goods and Services Tax Council shall be guided by the need for a harmonised structure of goods and services tax and for the development of a harmonised national market for goods and services.
(6) One-third of the total number of members of the Goods and Services Tax Council shall constitute the quorum at its meetings.
(7) The Goods and Services Tax Council shall determine the procedure in the performance of its functions.
(8) Every decision of the Goods and Services Tax Council taken at a meeting shall be with the consensus of all the members present at the meeting.
(9) 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 irregularity in the procedure of the Council not affecting the merits of the case.
Explanation. - For the purposes of this article, “State” includes a Union territory with Legislature.
A New Article 279B:
Goods and Services Tax Dispute Settlement Authority. - (1) Parliament may, by law, provide for the establishment of a Goods and Services Tax Dispute Settlement Authority to adjudicate any dispute or complaint referred to it by a State Government or the Government of India arising out of a deviation from any of the recommendations of the Goods and Services Tax Council constituted under article 279A that results in a loss of revenue to a State Government or the Government of India or affects the harmonised structure of the goods and services tax.
(2) The Goods and Services Tax Dispute Settlement Authority shall consist of a Chairperson and two other members.
(3) The Chairperson of the Goods and Services Tax Dispute Settlement Authority shall be a person who has been a Judge of the Supreme Court or Chief Justice of a High Court to be appointed by the President on the recommendation of the Chief Justice of India.
(4) The two other members of the Goods and Services Tax Dispute Settlement Authority shall be persons of proven capacity and expertise in the field of law, economics or public affairs to be appointed by the President on the recommendation of the Goods and Services Tax Council.
(5) The Goods and Services Tax Dispute Settlement Authority shall pass suitable orders including interim orders.
(6) A law made under clause (1) may specify the powers which may be exercised by the Goods and Services Tax Dispute Settlement Authority and provide for the procedure to be followed by it.
(7) Notwithstanding anything in this Constitution, Parliament may by law provide that no Court other than the Supreme Court shall exercise jurisdiction in respect of any such adjudication or dispute or complaint as is referred to in clause (1).
Explanation. - For the purpose of this article, “State” includes a Union territory with Legislature.'