{"id":58463,"date":"2026-04-15T16:43:36","date_gmt":"2026-04-15T11:13:36","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=58463"},"modified":"2026-04-17T12:02:08","modified_gmt":"2026-04-17T06:32:08","slug":"101st-constitutional-amendment-act","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/101st-constitutional-amendment-act\/","title":{"rendered":"101st Constitutional Amendment Act, Importance, Key Details"},"content":{"rendered":"

Under 101st Constitutional Amendment Act, Goods and Service tax which is popularly known as GST was included in the Constitution of India. Article 366(12A) discusses the same which also refers to tax applied to the supply of goods, services or even both from which sale of alcohol is exempted.<\/span><\/p>\n

The Goods and Services Tax<\/strong><\/a> (GST) marked a major shift in the Indirect Tax System of India. It merged several Central and State taxes into a single tax, resolving the issue of double taxation. For consumers, one of the biggest benefits was the expected drop in the overall tax burden on goods earlier around 25-30%. It also made the cost of taxes more transparent, so people could actually see how much they were paying.<\/span><\/p>\n

101st Constitutional Amendment Act<\/b><\/h2>\n

Article 246 of the Indian Constitution<\/strong><\/a> splits legislative powers, including taxation, between the Parliament and State Legislatures. The Constitution ensures that fiscal powers of the Centre and the States are clearly separated, with minimal overlap.<\/span><\/p>\n

The Centre can tax the manufacture of goods except alcoholic beverages for human use, opium, and narcotic drugs. States are allowed to tax the sale of goods, but not their manufacture. For inter-state sales, the Centre levies a tax called the Central Sales Tax, but the revenue goes entirely to the state where the sale originated.<\/span><\/p>\n

When it comes to services, only the Centre is allowed to impose a service tax. States cannot levy taxes on the import or export of goods; this power lies solely with the Centre. The Centre also collects additional customs duties (CVD and SAD) to make up for taxes like excise duty and VAT that would apply if the same goods were made domestically.<\/span><\/p>\n

With the launch of GST, the Constitution had to be amended to give both the Centre and States the power to tax and collect GST.<\/span><\/p>\n

Also Check: 103rd Constitutional Amendment Act<\/a><\/strong><\/p>\n

Legislative Basis Of GST<\/b><\/h2>\n

The GST Bill was first introduced in the 16th Lok Sabha<\/strong><\/a> in 2014. It was passed by the Lok Sabha in May 2015 and, after a few changes, cleared the Rajya Sabha in August 2016. Once the required number of states ratified it, the Bill received the President\u2019s assent on September 8, 2016, and became the 101st Constitutional Amendment. The GST Council was formed soon after, on September 12, 2016, with a dedicated Secretariat to guide its work. To ensure a smooth rollout of GST, several committees and sector-specific groups were created, including representatives from both the Centre and the States.<\/span><\/p>\n

Important provisions of the Bill<\/b><\/h3>\n