GST was introduced in India through which Constitutional Amendment Act?

The correct answer is A, Goods and Services Tax. GST is charged on the supply of goods and services, and although the registered supplier deposits it with the government, the amount is recovered from the buyer in the price. Since the burden is shifted to someone other than the person who pays it in, GST is an indirect tax.

Option B, corporation tax, is a direct tax on the profits of a company, and the company cannot pass the liability on to anyone else. Option C, income tax, is the classic direct tax, levied under the Income-tax Act of 1961 on the income of individuals and other assessees according to their ability to pay. Option D, capital gains tax, is charged on the profit made when a capital asset such as land, a building or a share is sold, and is again borne by the seller who earned the gain. All three are administered by the Central Board of Direct Taxes, while GST falls under the Central Board of Indirect Taxes and Customs.

The correct answer is B, Gift tax. A gift tax is charged on the transfer of money or property from one person to another without consideration; it is a tax on a transfer between persons, not on any sale of goods or supply of services. India abolished the gift tax in 1998, and gifts above the prescribed limit are now taxed in the hands of the receiver as income from other sources.

Option A, sales tax, was the tax states levied on the sale of goods before value added tax and then GST took its place. Option C, luxury tax, was levied by states on hotel accommodation and similar services and has been subsumed into GST. Option D, sin tax, is the general name for a heavy levy on goods considered harmful, such as tobacco and liquor, and in the GST era it appears as the compensation cess on demerit goods. All three of these are levied with reference to goods or services, so only the gift tax stands apart.

The correct answer is B, Article 265. It is the foundation of the whole tax system, because it means the executive cannot demand money from a citizen without a law passed by the competent legislature. Any levy that fails this test can be struck down by a court.

Option A, Article 246A, was inserted by the hundred and first amendment and gives Parliament and the state legislatures concurrent power to make laws on the Goods and Services Tax, which is a different matter from the general requirement of legal authority. Option C, Article 279A, provides for the constitution of the GST Council by the President. Option D, Article 280, provides for the Finance Commission, which the President appoints every fifth year to recommend how central taxes should be distributed between the Union and the states. Only Article 265 states the basic rule that taxation must rest on law.

The correct answer is B, 1 July 2017. GST was rolled out at a midnight session of Parliament and the date is now observed every year as GST Day. From that date a single tax on the supply of goods and services replaced central excise duty, service tax, state value added tax and a long list of smaller state levies.

Option A, 1 April 2016, is the beginning of a financial year but has no connection with GST; the enabling amendment was still before Parliament then. Option C, 1 April 2017, is when several of the GST Acts received assent, but the tax itself was not yet in operation. Option D, 1 January 2018, is later than the rollout and is sometimes confused with the introduction of the electronic way bill, which was phased in during 2018. The single date worth memorising for this chapter is 1 July 2017.

The correct answer is B, Article 279A. Under it the President constitutes the GST Council, which is chaired by the Union Finance Minister and includes the Union Minister of State for Finance and a minister nominated by each state. The Council recommends the rates, the exemptions, the threshold limits and the model laws, and it is the forum where the Centre and the states bargain.

Option A, Article 269A, provides for the levy and collection of GST on inter-state supply by the Government of India and its apportionment between the Union and the states. Option C, Article 246A, is the enabling provision that gives both Parliament and the state legislatures power to make laws on GST. Option D, Article 268, deals with duties levied by the Union but collected and appropriated by the states, such as stamp duties, a much older provision. The Council alone belongs to Article 279A.