Relevance of Constitutional provisions :
Understanding basic concepts of taxation under Constitution is essential to understand scope and limitations of GST.
Constitution of India makes provisions relating to taxation powers of Union and States. GST cannot be imposed as the Constitutional provisions stand today.
The Constitution of India has been to incorporate provisions relating to GST.
The Constitution (one hundred and First Amendment) Bill, 2014 has been passed by Lok Sabha on 6-5- 2015. It has been passed by Rajya Sabha on 3-8-2016 after making certain amendments. These amendments have been approved by Lok Sabha.
The Bill was ratified by 17 States. It was assented by President on 8-9-2016 and all provisions relating to the Constitutional amendments have been notified on 12-9-2016 and 16-9-2016.
The relevant provisions of Constitution of India and the changes as made w.e.f. 16-9-2016 are discussed below.