Concurrent taxing power for GST
Also called: Article 246A · Topic: Federalism and Centre-State Relations · NCERT: Beyond NCERT
Meaning
The concurrent taxing power for GST comes from Article 246A, which was added by the 101st Amendment (2016). It lets Parliament and state legislatures both tax the same supply of goods and services at the same time. Usually the Constitution gives each tax to only one level of government, so this was a big change. Parliament alone can tax supplies that go from one state to another (Article 269A). GST came into force on 1 July 2017.
Example
Someone buys a mobile phone inside Maharashtra. Central GST goes to the Union and State GST goes to Maharashtra, both charged on the same sale. If the phone is sent from Maharashtra to Karnataka, only Parliament's integrated tax applies.
Don't confuse with
- GST Council (Art. 279A): a joint body of the Union and states that recommends GST rates and rules. Article 246A gives the power to tax. In Mohit Minerals (2022), the Supreme Court held that the Council's advice is persuasive, not binding.
Related concepts
- Vertical fiscal imbalance
- Grants-in-aid
- Discretionary grants
- Gadgil formula
- 101st Constitutional Amendment Act 2016