Which article of the Constitution provides that no tax shall be levied or collected except by authority of law?
- A.Article 246A
- B.Article 265
- C.Article 279A
- D.Article 280
Correct answer
Explanation
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.
Read the full article: Taxation in India and GST: Types, Articles and PYQs
Practice Questions
View allWhich of the following is an Indirect Tax in India?
- A.Goods and Services Tax
- B.Corporation Tax
- C.Income Tax
- D.Capital Gains Tax
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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.
Read the full explanation →Which among the following taxes is NOT imposed on goods and services?
- A.Sales tax
- B.Gift tax
- C.Luxury tax
- D.Sin tax
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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.
Read the full explanation →The Goods and Services Tax came into force in India on
- A.1 April 2016
- B.1 July 2017
- C.1 April 2017
- D.1 January 2018
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GST was rolled out at a midnight session of Parliament and the date is now observed every year as GST Day.
Read the full explanation →GST was introduced in India through which Constitutional Amendment Act?
- A.One Hundred and First Amendment Act, 2016
- B.One Hundred and Second Amendment Act, 2018
- C.Hundred and Twenty-second Amendment Act, 2016
- D.Ninety-seventh Amendment Act, 2011
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It inserted Article 246A, Article 269A and Article 279A and made the sharing of taxing power between the Union and the states possible, so that both could tax the same supply.
Read the full explanation →The GST Council is constituted under which article of the Constitution?
- A.Article 269A
- B.Article 279A
- C.Article 246A
- D.Article 268
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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.
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