Roadmap for Answer Writing 1. Introduction Definition of the 101st Constitutional Amendment Act: Briefly explain its purpose in introducing the Goods and Services Tax (GST). Thesis Statement: State its significance in simplifying India’s tax structure and how it reflects the accommodative spirit of ...
The 42nd Amendment: A Revision of the Indian Constitution Extensive Changes: The 42nd Amendment of 1976, often called the "Constitution (Forty-Second Amendment) Act," is considered a major revision of the Indian Constitution due to its extensive modifications. It introduced significant changes to thRead more
The 42nd Amendment: A Revision of the Indian Constitution
Extensive Changes: The 42nd Amendment of 1976, often called the “Constitution (Forty-Second Amendment) Act,” is considered a major revision of the Indian Constitution due to its extensive modifications. It introduced significant changes to the Preamble, including the words “Socialist,” “Secular,” and “Integrity,” reflecting a shift in constitutional objectives.
Centralization of Power: The amendment enhanced the powers of the Central Government at the expense of the states, making it a revision in terms of federal balance. It amended the distribution of powers between the Union and State legislatures, reinforcing central authority.
Judicial Review and Fundamental Rights: It also altered the scope of judicial review and the protection of Fundamental Rights, impacting the balance of power among the different branches of government. For instance, it introduced provisions that aimed to limit the scope of judicial review over constitutional amendments.
Recent Examples: While some provisions were later modified by subsequent amendments (such as the 44th Amendment in 1978), the 42nd Amendment remains a significant marker of constitutional revision in terms of its scope and impact.
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Model Answer Introduction The 101st Constitutional Amendment Act, enacted in 2016, marked a significant transformation in India's tax structure by introducing the Goods and Services Tax (GST). This amendment aimed to replace a complex array of central and state taxes with a unified tax regime, embodRead more
Model Answer
Introduction
The 101st Constitutional Amendment Act, enacted in 2016, marked a significant transformation in India’s tax structure by introducing the Goods and Services Tax (GST). This amendment aimed to replace a complex array of central and state taxes with a unified tax regime, embodying the spirit of cooperation inherent in Indian federalism.
Significance of the 101st Constitutional Amendment Act:
Unified Tax Regime
The Act established a harmonized taxation system, eliminating the cascading effect of taxes that plagued the previous Value Added Tax (VAT) system. This integration of multiple taxes into a single structure streamlined tax compliance for businesses.
Simplified Tax Compliance
With the introduction of GST, taxpayers now follow a standardized process nationwide, easing the burden for multi-state service providers like telecom companies and banks, which previously navigated diverse state laws.
Economic Boost
The World Bank reported improvements in India’s business environment following the GST’s implementation, highlighting its role in fostering economic growth.
Enhanced Supply Chain Efficiencies
GST facilitated a unified market by removing bottlenecks at state borders, resulting in reduced transportation costs and increased efficiency, particularly benefitting sectors like logistics and e-commerce.
Promotion of Digital India
The amendment advanced digital governance through the GST Network (GSTN), which digitized tax administration, enhancing transparency and efficiency, and aligning with the broader objective of a Digital India.
Reflecting the Accommodative Spirit of Federalism:
Representation of All States
The GST Council, as outlined in Article 279A(1), includes representatives from all states, ensuring diverse regional interests are considered in policy-making.
Dispute Resolution Mechanism
The GST framework includes provisions for resolving conflicts between central and state governments, as seen during the COVID-19 pandemic, where compensatory adjustments were made.
Revenue Sharing
Consensus-based revenue-sharing agreements under the GST law reflect federal cooperation. For example, Tamil Nadu received approximately ₹40,000 crore in GST compensation during the transition, addressing concerns about potential revenue losses.
Consensus in Decision-making
The GST Council promotes collaborative policymaking, exemplified by its consensus on tax rate adjustments for essential COVID-19 supplies, showcasing a united approach to governance.
Strengthening Cooperative Federalism
The GST Council represents cooperative federalism, where both central and state governments participate in key policy decisions, leading to the rationalization of tax rates based on states’ inputs.
Conclusion
The 101st Constitutional Amendment Act not only transformed India’s tax landscape but also reinforced the spirit of cooperative federalism. By addressing regional concerns and fostering collaborative governance, it paves the way for a more harmonious federal relationship in India.
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