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Comprehension:

Read the passage carefully and answer the questions based on the passage:

GST: One Nation, One Tax, One Market

Goods and Service Tax (GST) is the single comprehensive indirect tax, operational from 2017, on supply of goods and services, right from the manufacturer/service provider to the consumer. It is a destination based consumption tax with facility of Input Tax Credit in the supply chain. It is applicable throughout the country with one rate for one type of goods/service. It has amalgamated a large number of Central and State taxes and cesses. It has replaced large number of taxes on goods and services levied on production/sale of goods or provision of service. Under GST, the tax is discharged at every stage of supply and the credit of tax paid at the previous stage is available for set off at the next stage of supply of goods and/or services. It has replaced various types of taxes/cesses, levied by the Central and State/UT Governments. Under GST, there are six standard rates applied on supply of all goods and/or services across the country. The 101th Constitution Amendment Act introduced Article 246A in the Constitution cross empowering Parliament and Legislatures of States to make laws with reference to Goods and Service Tax imposed by the Union and the States. GST has simplified the multiplicity of taxes, facilitated freedom of movement, created a common market in the country, standardized laws, procedures and rates of taxes across the country, aimed at reducing the cost of business operations and cascading effect of various taxes on consumers. It has also reduced the overall cost of production, which will make Indian products/services more competitive in the domestic and international markets.

Under Article 246A, which was not enacted for GST?

Solution

✅ Correct Option: 4

Option 1 -> Central Goods and Service Tax Act was enacted under Article 246A to levy GST on intra-state supplies by the Centre.

Option 2 -> Integrated Goods and Service Tax Act was enacted under Article 246A to levy GST on inter-state supplies and imports.

Option 3 -> States Goods and Service Tax Act was enacted under Article 246A to levy GST on intra-state supplies by States.

Option 4 -> Regional Goods and Service Tax does not exist and was never enacted under Article 246A.


Hence, Regional Goods and Service Tax -> Article 246A, inserted by the 101st Constitutional Amendment Act 2016, provides concurrent power to Parliament and State Legislatures to make laws on GST. Under this provision, three acts were enacted: CGST Act (for Central Government), SGST Act (for State Governments), and IGST Act (for inter-state transactions). There is no such act as "Regional Goods and Service Tax" in the Indian GST framework -> correct

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