Article 246A: Special provision with respect to goods and services tax

Leading cases

• Union of India v. Mohit Minerals Pvt. Ltd. (2022)GST Council recommendations are persuasive and do not bind Parliament and State legislatures; IGST on ocean freight levied on importers under CIF contracts violates the composite supply principle in Section 8 of the CGST Act; appeals dismissed.

Questions on this article

12 questions in 18 of our papers cite Article 246A. Try these from the free papers:

1. 1. Entry 54 of the State List, as substituted by the Constitution (One Hundred and First Amendment) Act, 2016, empowers the States to levy taxes on the sale of:

   A.petroleum crude, high speed diesel, motor spirit, natural gas, aviation turbine fuel and alcoholic liquor for human consumption, except in inter-State or international tradeB.petroleum products and alcoholic liquor for human consumption, but only until the GST Council recommends the date for levying goods and services tax on such goodsC.all goods other than newspapers, where the sale or purchase takes place within the State and not in the course of inter-State trade or commerceD.alcoholic liquor for human consumption, tobacco and tobacco products, and electricity, including a sale of any of them made in the course of inter-State trade or commerce in India
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2. 2. Under Article 246A(1) of the Constitution, the power to make laws with respect to goods and services tax imposed by the Union or by a State is vested in:

   A.the Legislature of every State alone, subject to the previous sanction of the President for each lawB.Parliament alone, with every State Legislature acting only on the recommendation of the GST CouncilC.Parliament and the State Legislatures concurrently, with State laws yielding to Union laws under Article 254D.Parliament and, subject to clause (2), the Legislature of every State, notwithstanding Articles 246 and 254
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3. 3. Assertion (A): Parliament cannot increase the goods and services tax levied under Article 246A by a surcharge for purposes of the Union under Article 271. Reason (R): Article 271 expressly excludes the goods and services tax under Article 246A from the duties and taxes that Parliament may increase by such a surcharge.

   A.Both A and R are true, and R is the correct explanation of AB.A is false, but R is trueC.A is true, but R is falseD.Both A and R are true, but R is not the correct explanation of A
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