122nd Constitutional Amendment Bill, 2014

122nd Constitutional Amendment Bill, 2014

Bill No 192-C OF 2014

THE CONSTITUTION (ONE HUNDRED AND TWENTY SECOND AMENDMENT) BILL, 2014

A

BILL

Further to amend the Constitution of India

Be it enacted by parliament in the sixty-sixth year of the Republic of India as follows:-

  1. (1) This act may be called the constitution (one hundredth amendment) Act, 2015.
    (2) It shall come into force on such date as the Central Government may by notification in the Official Gazette, appoint , and different dates may be appoint for different provisions of this act and any reference in any such provision to the commencement of this Act shall be constructed as a reference to the commencement of that provision.
  2. After article 246 of the constitution, the following article shall be inserted , namely:-
    “246A.
    1. Notwithstanding anything contained in article 246 and 254, Parliament and subject to clause (2), the legislature of every state, have power to make laws with respect to goods and service tax imposed by the union or by such state.
    2. Parliament has exclusive power to make laws with respect goods and service tax where the supply of goods, or of services, or both takes place in the course of interstate or commerce.
    Explanation – The provision of this article, shall in respect of goods and services tax referred to clause (5) of article 279A, take effect from the date recommended by the Goods and Service Tax Council.”
    3. In article 248 of the Constitution, in clause (1) , for the word “Parliament “ the figures and letter “ Subject to article 246A ,Parliament “ shall be substituted .
    4. In the article 249 of the Constitution, in clause (1) after the word “with respect to “, the word and figure “goods and services tax provided under article 246A or “shall be inserted.
    5. In the article 250 of the Constitution, in clause (1) after the word “with respect to “, the word and figure “goods and services tax provided under article 246A or “shall be inserted.
    6. In article 268 of the constitution, in clause (1), the word “and such duties of exercise on medicinal and toilet preparation “shall be omitted.
    7. Article 268A of the constitution, as inserted by section 2 of the constitution (Eighty –eight Amendment) Act, 2003 shall be omitted.
    8. In article 269 of the constitution, in clause (1), after the word “consignment of goods”. The words, figure and letter ‘expected as provided in article 269 A” shall be inserted.
    9. After article 269 of the constitution , the following article shall be inserted namely –
    “269A (1) Goods and services tax on supplies in the course of interstate trade or commerce shall be levied and collected by the Government Of India and such tax shall be apportioned between the Union and the States in the manner as may be provided by Parliament by law on the recommendations of the Goods and Services Tax Council.
    Explanation —- For the purpose of this clause,, supply of goods and services or both in the course of import into the territory of India shall be deemed to be supply of goods , or of service, or both in the course of Inter –state trade or commerce.
    (2) Parliament may, by law, formulate the principle for determining the place of supply, and when a supply of goods or of services, or both takes place in the place in the course of interstate trade or commerce.”
    10. In article 270 of the Constitution :-
    i. in clause (1) for the words , figure and letter “article 268,268A, and 269 “’,the word , figure and letter “article 268,268A, and 269 A” shall be inserted ;
    ii. after clause (1) , the following clause shall be inserted , namely—
    “(IA) the goods and service tax levied and called by the Government of India, except the tax apportioned with the States under clause (i) of the article 269A,shall also be distributed between the Union and the States in the manner provided in clause (2).”
    11. In article 271 of the constitution, after the word “in those articles “, the words and figure and letter “except the goods and services tax under article 246A,”shall be inserted.
    12. After article 279 of the constitution, the following article shall be inserted , namely:—-
    “279A.
    (1) the President shall, within sixty days from the date of commencement of the constitution (One Hundredth Amendment )Act,2015, 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 or finance ________________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 service tax council referred to sub clause © 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 service tax council shall make recommendations to the union and the state on ———–
    (a) the taxes, cesses and surcharges levied by the Union, 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) model Goods and Services Tax Laws, principles of levy, apportionment of Integrated Goods and Services Tax and the principles that govern the place of supply;
    (d) the threshold limit of turnover below which goods and services may be exempted from goods and services tax;
    (e) the rates including floor rates with bands of goods and services tax;
    (f) any special rate or rates for a specified period, to raise additional resources during any natural calamity or disaster;
    (g) special provision with respect to the States of Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand; and .
    (h) any other matter relating to the goods and services tax, as the Council may decide.
    (5) The Goods and Services Tax Council shall recommend the date on which the goods and services tax be levied on petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel.
    (6) 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 .
    (7) One half of the total number of Members of the Goods and Services Tax Council shall constitute the quorum at its meetings.
    (8) The Goods and Services Tax Council shall determine the procedure in the performance of its functions.
    (9) Every decision of the Goods and Services Tax Council shall be taken at a meeting, by a majority of not less than three-fourths of the weighted votes of the members present and voting, In accordance with the following principles, namely:—-
    (a) the vote of the Central Government shall have a weightage of one- third of the total votes cast, and
    (b) the votes of all the State Governments taken together shall have a weightage of two-thirds of the total votes cast, in that meeting.
    (10) 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 procedural Irregularity of the Council not affecting the merits of the case.
    (11) The Goods and Services Tax Council may decide about the modalities to 15 resolve disputes arising out of its recommendations.”
    13. In article 286 of the Constitution ,———–
    i. in clause (1)——–
    A. for the words “the sale or purchase of goods where such sale or purchase takes place”, the words “the supply of goods or of services or both, 20 where such supply takes place” shall be substituted;
    B. in sub-clause (b), for the word “goods”, at both the places where it occurs the words “goods or services or both” shall be substituted;
    ii. in clause (2), for the words “sale or purchase of goods takes place”, the words “supply of goods or of services or both” shall be substitute
    iii. clause (3) shall be omitted.
    14. ln article 366 of the Constitution,-
    i. after clause (12) ,the following clause shall be inserted , namely:—-
    ‘(12A)” goods and service tax “means any tax on supply of goods, or services or both except taxes on the supply of the alcoholic liquor for human consumption;
    ii. in clause (26) , the following clauses shall be inserted , namely:-
    ‘(26A) “Services “means anything other than goods;
    (26B) “State with reference to article 246A, 268, 269, 269A and 279A include a Union territory with Legislature:
    15. In article 368 of the Constitution, in clause (2), in the proviso, in clause (a)for the words and figures “article 162 or article 241 “, the words, figures and letter “article I 62, article 241 or article 279A “ shall be substituted.
    16. In the Sixth Schedule to the Constitution, in paragraph 8, in sub-paragraph (3),—–
    (i) in clause (c), the word “and “ occurring at the end shall be omitted;
    (ii) in clause (d), the word “and “ shall be inserted at the end ;
    (iii) after clause (d), the following “and “ shall be inserted ,namely:-
    “(e) taxes on entertainment and amusements .”.
    17. In the Seventh Schedule to the Constitution —–
    (a) in List I— Union List—
    i. For entry 84,the following entry shall be substituted , namely:—
    “84. Duties of excise on the following goods manufactured or produced in India, Namely –
    (a) petroleum crude
    (b) high speed diesel ;
    (c) motor spirit (commonly known as petrol);
    (d) natural gas ;
    (e) aviation turbine fuel :and
    (f) tobacco and tobacco products “;
    ii. entries 92 and 92C shall be omitted ;
    (b) in list II-State List—
    i. entry 52 shall be omitted;
    ii. for entry 54, the following entry shall be substituted, namely:-
    “54. Taxes on the sale of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas, aviation turbine fuel and alcoholic liquor for human consumption, but not including sale in the course of inter-State trade or commerce or sale in the course of international trade or commerce of such goods.
    iii. entry 55 shall be omitted;
    iv. for entry 62, the following entry shall be substituted, namely:-
    “62. Taxes on entertainments and amusements to the extent levied and collected by a Panchayat or a Municipality or a Regional Councilor a District Council.” 18. (1) An additional tax on supply of goods, not exceeding one per cent, in the course of inter-State trade or commerce shall, notwithstanding anything contained in clause (1) of article 269A, be levied and collected by the Government of India for a period of two years or such other period as the Goods and Services Tax Council may recommend, and such tax shall be assigned to the States in the manner provided in sub-section (2).
    (2) The net proceeds of additional tax on supply of goods in any financial year, except ‘the proceeds attributable to the Union territories, shall not form part of the Consolidated
    Fund of India and be deemed to have been assigned to the States from where the supply originates . (3) The Government of India may, by where it consider necessary in the public interest, exempt such goods from the levy of tax under sub –section (I).
    (4) Parliament may , by law, formula the principles for determining the place of origin from where supply of goods take place in the course of inter- state trade or commerce.
    (5) For purpose of this section,” state “shall have the meaning assigned to it in clause (26B) of article 366 of the Constitution. 19. Parliament may, by law, on the recommendation of the Goods and Services Tax Council, provide for compensation to the States for loss of revenue arising on account of implementation of the goods and services tax for such period which may extend to five years.
    20. Notwithstanding anything in this Act, any provision of any law relating to tax on goods or services or on both in force in any State immediately before the commencement of this Act, which is inconsistent with the provisions of the Constitution as amended by this Act shall continue to be in force until amended or repealed by a competent Legislature or other competent authority or until expiration of one year from such commencement, whichever is earlier
    21. (1) If any difficulty arises in giving effect to the provisions of the Constitution as amended by this Act (including any difficulty in relation to the transition from the provisions of the Constitution as they stood immediately before the date of assent of the President to this Act to the provisions. of the Constitution as amended by this Act), the President may, by order, make such provisions, including any adaptation or modification of any provision of the Constitution as amended by this Act or law, as appear to the President to be necessary or expedient for the purpose of removing the difficulty:
    Provided that no such order shall be made after the expiry of three years from the date of such assent.
    (2) Every order made under sub-section (1) shall, as soon as may be after it is made, 20 be laid before each House of Parliament.

 

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