Amendment to empower Union and States to levy GST :
Article 246A in Constitution of India has been inserted w.e.f. 16-9-2016 to give concurrent powers to Parliament and legislature of each State to make laws with respect to goods and service tax imposed by the Union or by such State.
For this purpose, ‘State’ will include ‘Union territory with legislature’- Article 366(26B) of Constitution of India [This will cover Delhi, Chandigarh and Puducherry].
As per Article 246(2) of Constitution of India as amended w.e.f. 16-9-2016, Parliament will have exclusive powers to make laws with respect of goods and services tax where the supply of goods, or of services, or both takes place in the course of inter-state trade or commerce.
Explanation to Article 246 of Constitution of India states that GST on inter-state supply of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation and turbine fuel shall take effect from the date recommended by GST Council.
Article 248 of Constitution of India as amended w.e.f. 16-9-2016 provides that Parliament will have all residuary powers to make laws, including taxation, but subject to Article 246A of Constitution of India (which confers concurrent powers of Union and States to levy GST).
Thus, Parliament will not have powers in respect of State GST.
Article 250 of Constitution of India is amended to provide for emergency powers of Parliament to make laws for whole or part of India, with respect to GST.
Definition of ‘goods’ – ‘Goods’ include all materials, commodities and articles – Article 366(12) of Constitution of India.
This is inclusive definition. It should cover all tangible and intangible movable property.
Definition of Services – ‘Services’ means anything other than goods – Article 366(26A) of Constitution of India w.e.f. 16-9-2016.
This is very broad definition. Even immovable property can get covered in this definition.