Before the introduction of a National Goods and Services Tax in India by way of the Constitution One...........

Indian Polity Others

Before the introduction of a National Goods and Services Tax in India by way of the Constitution (One Hundred and First Amendment) Act, 2016.

1) The scheme of the Constitution did not provide for any concurrent taxing powers to the Union as well as the States.

2) States did not have any authority to alter tax rates that were appropriated to them.

Which of the above is/are correct?

1 only

2 only

Both 1 and 2

None

छोटे Courses बड़े Results

Master Others

Prepare through Micro-courses

Try Now

Explanation:

Statement 1: The past scheme of the Constitution did not provide for any concurrent taxing powers to the Union as well as the States. Therefore it was proposed to introduce the GST and for this purpose to amend the Constitution conferring simultaneous power on Parliament as well as the State Legislatures including every Union territory with Legislature to make laws for levying goods and services tax on every transaction of supply of goods or services or both. The goods and services tax thus replaced a number of indirect taxes presently being levied by the Central Government and the State Governments and is thus intended to remove cascading of taxes and provide a common national market for goods and services. The Central and State GST would be levied on all transactions involving supply of goods and services except those that are exempt or kept out of the purview of the goods and services tax.

Statement 2: States had taxation authority within the sphere allocated to them under the constitution.