Goods and Services Tax (GST) - Constitution Amendment Bill

GST - THE CONSTITUTION (ONE HUNDRED AND TWENTY SECOND AMENDMENT) Bill, 2014

ENACTING FORMULA

1. That at page 1, line 1, for the word "Sixty-Sixth", the word "Sixty-Seventh" be substituted.

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2. That at page 1, lines 2 and 3, for the words,  for the words, bracket and figure "the Constitution (One Hundredth Amendment) Act, 2015", the words, bracket and figure "the Constitution (One Hundred and First Amendment) Act, 2016" be substituted.

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3. That at page 2, after line 28, the following be inserted namely, 

 (2) The amount apportioned to a State under clause (1) shall not form part of the Consolidated Fund of India.

 (3)  Where an amount collected as tax levied under clause (1) has been used for payment of the tax levied by a State under Article 246A, such amount shall not form part of the Consolidated Fund of India. 

 (4)  Where an amount collected as tax levied by a State under Article 246A has been used for payment of the tax levied, such amount shall not form part of the Consolidated Fund of the State.

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4. That at page 2, for lines 35 to 39, the following be substituted, namely: 

        "(ii) after clause (1), the following clauses shall be substituted, namely:-

(1A) Tax collected by the Union under clause (1) shall also be distributed between the Union and the States in the manner provided in clause (2). 

(1B) The tax levied and collected by the Union under clause (2) of Article246A and article 269(A), which has been used for payment of the tax levied by the Union under clause (1) of Article 246 (A) and the amount apportioned to the Union under clause (1) of Article 269A, shall also be distributed between the Union and the States in the manner provided in clause (2).:'

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5. "That at page 3, lines 3, for the words, bracket and figure "the Constitution ( One Hundredth Amendment) Act, 2015", the words, bracket and figure "the Constitution (One Hundred and First Amendment) Act, 2016" be substituted.

6. That at page 3, line 22, for the words "Integrated Goods and Service Tax", the words, figure and alphabet "Goods and Service Tax levied on supplies in the course of inter-State trade or commerce under Article 269A", be substituted.

7. That at page 4, for lines 15 and 16, the following be substituted namely:

        "(11) The Goods and Service Tax Council shall establish a mechanism to adjudicate any dispute

(a) between the Government of India and one or more States; or 

(b) between the Government of India and any State or States on one side and one or more other States on the other side; or

(c) between two or more States,

arising out of the recommendations of the Council or implementation thereof".

9. That at page 5, lines 26 to 40, be deleted.                 Omission of clause 18.

10. That at page 6, for line 1 for the word "may", the word "shall" be substituted.

Goods and Services Tax distribution: apportioned receipts excluded from Consolidated Funds and formal dispute adjudication mechanism established. The Bill reallocates GST collection and distribution between the Union and States, stipulating that amounts apportioned to States or amounts exchanged between Union and State tax liabilities shall not form part of the respective Consolidated Funds, and mandates distribution of union-collected GST and specified union-levied taxes between Union and States in the prescribed manner.