Introduction 

• The 101^st Constitutional Amendment Act, 2016 marks a watershed moment in India's taxation history, introducing the Goods and Services Tax (GST) regime. 
• This amendment fundamentally restructured the taxation powers between the Union and States, creating a unified taxation system for goods and services across India. 

Key Constitutional Provisions Added/Modified 

• Article 246A - New Power Structure 
  • Primary Provision: Grants concurrent powers to Parliament and State Legislatures to make laws regarding GST. 
  • Exception: Parliament holds exclusive power over inter-State trade and commerce. 
  • Special Provision: Separate clause for petroleum products (crude, diesel, petrol, natural gas, aviation fuel). 
• Article 269A - Inter-State Trade and Commerce 
  • Collection Mechanism: Central Government levy and collect GST on inter-State supplies. 
  • Revenue Sharing: Tax proceeds to be apportioned between Union and States as per Parliament's law. 
  • Import Classification: Supplies during import deemed as inter-State trade. 
  • Parliamentary Powers: Authority to formulate principles for place of supply. 
• GST Council - Article 279A 
  1. Structure:  
     • Chairperson: Union Finance Minister 
     • Vice Chairperson: Chosen from members 
     • Members: Union Minister of State (Revenue/Finance) 
     • State Representatives: Finance/Taxation Ministers from each state 
  2. Voting Structure:  
     • Government: 1/3rd weightage 
     • State Governments: 2/3rd weightage 
     • Decisions require 3/4th majority 
     • Quorum: 50% of total members
  3. Key Responsibilities:  
     • Recommend tax subsumption 
     • Determine goods/services under GST 
     • Develop model GST laws 
     • Set threshold limits 
     • Establish rate structure 
     • Create special provisions for specific states 
     • Decide petroleum products taxation timeline

Critical Amendments to Constitutional Lists

• Union List (List I) Modifications 
  1. Entry 84: Limited to specific items (petroleum crude, diesel, petrol, natural gas, aviation fuel, tobacco). 
  2. Entries Removed:  
     • Entry 92 (Taxes on newspaper sales and advertisements) 
     • Entry 92C (Service tax)
• State List (List II) Changes 
  1. Entry 54: Modified to cover only specified petroleum products and alcohol. 
  2. Entries Removed:  
     • Entry 52 (Entry tax) 
     • Entry 55 (Advertisement taxes) 
  3. Entry 62: Limited to entertainment/amusement taxes for local bodies.

Other Significant Constitutional Changes 

• Article 286 - State Taxation Restrictions 
  • Prohibits State taxation on inter-State supply. 
  • Restricts taxation on import/export supplies. 
  • Parliament was empowered to determine supply principles. 
• Compensation Mechanism 
  • Five-year compensation guarantee to States. 
  • Parliament to establish compensation methodology. 
  • Based on GST Council recommendations. 
• Transitional Provisions 
  • One-year transition period for existing state laws. 
  • Automatic expiry post one year unless amended/repealed. 
  • Special provisions for Jammu & Kashmir.

Special Features and Safeguards 

• Constitutional Safeguards 
  • Article 368: GST Council changes require 50% state ratification. 
  • Article 279A: Dispute resolution mechanism mandate. 
  • Harmonization: Council guided by national market development. 
• Exclusions from GST 
  • Alcoholic liquor for human consumption. 
  • Petroleum products (temporary). 
  • Entertainment tax by local bodies. 

Implementation Timeline 

• Presidential Assent: April 12, 2017 
• General Implementation: July 1, 2017 
• J&K implementation: July 8, 2017 
• Implementation Acts:  
  • Central GST Act 
  • Integrated GST Act 
  • Union Territory GST Act 
  • GST (Compensation to States) Act

Conclusion

The 101^st Constitutional Amendment represents a fundamental restructuring of India's taxation framework, establishing a unified national market through GST. It balances central and state powers while creating institutional mechanisms for coordination and dispute resolution. The amendment's comprehensive nature, covering everything from tax powers to administrative structures, makes it one of the most significant modifications to India's fiscal federal structure since independence.