Position of taxing articles post Constitutional Amendment

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Once the Amendment bill is passed, the various taxing powers of Central and State government shall stand amended as under:

 

Taxing Authority Entry / Article of Constitution Power before Amendment Powers after Amendment
Centre / State Article 246 Enabling Article for make Laws in respect of matters enumerated in Lists Same as before
Centre Entry 83 to List I Customs duty Same as before
Centre Entry 84 to List I Duties of excise on tobacco and other goods manufactured or produced

in India except—

(a) alcoholic liquors for human consumption.

(b) opium, Indian hemp and other narcotic drugs and narcotics

Excise Duty to apply only on manufacture of five petroleum products and tobacco and tobacco products
Centre Entry 92 to List I Taxes on the sale or purchase of newspapers and on advertisements

published therein

Omitted
Centre Entry 92C to List I Taxes on Services (never enacted) Omitted
State Entry No. 52

of List II

Taxes on the entry of goods into a local area for consumption, use or sale therein. Omitted
State Entry No. 54

of List II

Taxes on intra state sale of all goods Taxes on intra state sale of five petroleum products, alchoholic liquor for human consumption
State Entry No. 55

of List II

Taxes on advertisements other than advertisements published in the newspapers and advertisements broadcast by radio or television Omitted
State Entry No. 62

of List II

Taxes on Entertainment and Amusement Taxes on Entertainment and Amusement to the extent levied and colleted by Panchayat or a Municipality or a District / regional Council
Centre / State Article 246A Enabling Article for power to levy GST.  However, Parliament has exclusive power to levt GST in course of inter state supply NA

In summary, the following taxes will subsume in GST:

Exlusions:

  • Five Petroleum products (at present but proposed to be subsumed later),
  • Alcohol for human consumption,
  • Electricity (no clear exclusion provided in law)
  • Land duties (no clear exclusion provided in law)

 

Powers of Centre and State to levy Taxes after GST

Centre’s Power to levy Tax (other than Direct taxes)

  1. Terminal taxes on goods or passengers, carried by railway, sea or air, taxes on railway fares and freights.
  2. Taxes other than stamp duties on transactions in stock exchanges and futures markets.
  3. Rates of stamp duty in respect of bills of exchange, cheques, promissory notes, bills of lading, letters of credit, policies of insurance, transfer of shares, debentures, proxies and receipts.

92A.   Taxes on the sale or purchase of goods other than newspapers, where such sale or purchase takes place in the course of inter-State trade or commerce.

92B.   Taxes on the consignment of goods (whether the consignment is to the person making it or to any other person), where such consignment takes place in the course of inter-State trade or commerce.

State’s power to levy Tax

  1. Land revenue, including the assessment and collection of revenue, the maintenance of land records, survey for revenue purposes and records of rights, and alienation of revenues.
  2. Taxes on agricultural income.
  3. Duties in respect of succession to agricultural land.
  4. Estate duty in respect of agricultural land.
  5. Taxes on lands and buildings.
  6. Taxes on mineral rights subject to any limitations imposed by Parliament by law relating to mineral development.
  7. Duties of excise on the following goods manufactured or produced in the State and countervailing duties at the same or lower rates on similar goods manufactured or produced elsewhere in India:—

(a)      alcoholic liquors for human consumption;

(b)      opium, Indian hemp and other narcotic drugs and narcotics;

but not including medicinal and toilet preparations containing alcohol or any substance included in sub-paragraph (b) of this entry

  1. Taxes on the consumption or sale of electricity
  2. Taxes on goods and passengers carried by road or on inland waterways.
  3. Taxes on vehicles, whether mechanically propelled or not, suitable for use on roads, including tramcars subject to the provisions of entry 35 of List III.
  4. Taxes on animals and boats.
  5. Tolls.
  6. Taxes on professions, trades, callings and employments.
  7. Capitation taxes.
  8. Rates of stamp duty in respect of documents other than those specified in the provisions of List I with regard to rates of stamp duty.

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