NEW ARTICLE

PROPOSAL IN AMENDMENT BILL

ARTICLE 246A

[To be inserted after article 246 in PART XI of the Constitution].

[PART XI- RELATIONS BETWEEN THE UNION AND THE STATES :CHAPTER I.-LEGISLATIVE RELATIONS (Distribution of Legislative Powers)]

CLAUSE 2:

"246A. Special provision with respect to goods and services tax.

(1) Notwithstanding anything contained in articles 246 and 254, Parliament, and subject to clause (2), the Legislature of every State, have power to make laws with respect to goods and services tax imposed by the Union or by such State.

(2)  Parliament has exclusive power to make laws with respect to 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.–The provisions of this article shall, in respect of goods and service tax referred to in clause (5) of article 279A, take effect from the date recommended by the Goods and Service Tax Council.".

ARTICLE 269A

[To be inserted after article 269 in PART XII of the Constitution].

PART XII [FINANCE, PROPERTY, CONTRACTS AND SUITS:

CHAPTER I.-FINANCE( General)

CLAUSE 9:

"269A.  Levy and collection of goods and services tax in course of inter-State trade or commerce. –

(1) Goods and services tax on supplies in the course of inter-State trade or commerce shall be levied and collected by the Government of India and such tax shall be apportioned between the Union and the States in the manner as may be prescribed by Parliament by law on the recommendations of the Goods and Service Tax Council.

Explanation .-For the purposes of this clause, supply of goods or of services, or both in the course of import into the territory of India shall be deemed to be supply of goods, or of services, or both in the course of inter-State trade or commerce.

(2) Parliament may, by law, formulate the principles for determining the place of supply, and when a supply of goods, or of services, or both takes place in the course of inter-State trade or commerce."

ARTICLE 279A

[To be inserted after article 279 in PART XII of the Constitution].

PART XII [FINANCE, PROPERTY, CONTRACTS AND SUITS:

CHAPTER I.-FINANCE (Distribution of Revenues between the Union and the States )

CLAUSE 12

279A.  Goods and Services Tax Council.-

(1) The President shall, within sixty days from the date of commencement of the Constitution (One Hundred and Twenty-second Amendment) Act, 2014, by order, constitute a Council to be called the Goods and Services Tax Council.

(2) The Goods and Services Tax Council shall consist of the following members, namely:-

(a)  the Union Finance Minister ..... Chairperson;

(b)  the Union Minister of State in-charge of Revenue or Finance..... Member;

(c)  the Minister in-charge of Finance or Taxation or any other Minister nominated by each State Government ..... Members.

(3) The Members of the Goods and Services Tax Council referred to in sub-clause (c) of clause (2) shall, as soon as may be, choose one amongst themselves to be the Vice-Chairperson of the Council for such period as they may decide.

(4) The Goods and Services Tax Council shall make recommendations to the Union and the States on-

(a)  the taxes, cesses and surcharges levied by the Union, the States and the local bodies which may be subsumed in the goods and services tax;

(b)  the goods and services that may be subjected to or exempted from the goods and services tax;

(c) model Goods and Services Tax Laws, principles of levy, apportionment of Integrated Goods and Services Tax and the principles that govern the place of supply;

(d)  the threshold limit of turnover below which goods and services tax may be exempted from goods and services tax;

(e)  the rates including floor rates with bands of goods and services tax;

(f)  any special rate or rates for a specified period, to raise additional resources during any natural calamity or disaster;

(g) special provision with respect to the States of Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand; and

(h)any other matter relating to the goods and services tax, as the Council may decide.

(5) The Goods and Services Tax Council shall recommend the date on which the goods and services tax be levied on petroleum crude, high speed diesel, motor spirit(commonly known as petrol), natural gas and aviation turbine fuel.

(6)While discharging the functions conferred by this article, the Goods and Services Tax Council shall be guided by the need for a harmonised structure of goods and services tax and for the development of a harmonised national market for goods and services.

(7) One-third of the total number of members of the Goods and Services Tax Council shall constitute the quorum at its meetings.

(8) The Goods and Services Tax Council shall determine the procedure in the performance of its functions.

(9) Every decision of the Goods and Services Tax Council taken at a meeting, by a majority of not less than three-fourths of the weighted votes of the Members present and voting, in accordance with the following principles, namely:-

(a) the vote of the Central Government shall have a weightage of one-third of the total votes cast, and

(b) the votes of all the State Government taken together shall have a weightage of two-thirds of the total votes cast, in that meeting.

(10) No act or proceedings of the Goods and Services Tax Council shall be invalid merely by reason of-

(a)  any vacancy in, or any defect in, the constitution of the Council; or

(b)  any defect in the appointment of a person as a Member of the Council; or

(c)  any procedural irregularity of the Council not affecting the merits of the case.

(11) The Goods and Services Tax Council may decide about the modalities to resolve disputes arising out of its recommendations.

OMISSION OF EXISTING ARTICLE:

CLAUSE 7 OF THE AMENDMENT BILL: Article 268A* of the Constitution [as inserted by section 2 of the Constitution (Eighty-eighth Amendment) Act, 2003] shall be omitted.

* 268A. Service Tax levied by Union and collected and appropriated by the Union and the States - (1) Taxes on services shall be levied by the Government of India and such tax shall be collected and appropriated by the Government of India and the States in the manner provided in clause (2).

(2) The proceeds in any financial year of any such tax levied in accordance with the provisions of clause (1) shall be-

(a) collected by the Government of India and the States;

(b) appropriated by the Government of India and the States,

AMENDMENT OF EXISTING ARTICLE

EXISTING ARTICLE

PROPOSAL IN AMENDMENT BILL

ARTICLE OF THE CONSTITUTION SHALL BE READ AS:

ARTICLE 248

[ Residuary powers

of legislation.]

Part XI. - Relations between the Union and the States.

CLAUSE 3:

In article 248 of the Constitution, in clause (1), for the word "Parliament", the words, figures and letter "Subject to article 246A, Parliament" shall be substituted

248. (1) Parliament Subject to article 246A, Parliament has exclusive power to make any law with respect to any matter not enumerated in the Concurrent List or State List.

(2) Such power shall include the power of making any law imposing a tax not mentioned in either of those Lists.

ARTICLE 249

[Power of Parliament to legislate with respect to a matter in the State List in the national interest.]

Part XI. - Relations between the Union and the States.

CLAUSE 4:

In article 249 of the Constitution, in clause (1), after the words "with respect to", the words figures and letter "goods and services tax provided under article 246A or" shall be inserted.

249. (1) Notwithstanding anything in the foregoing provisions of this Chapter, if the Council of States has declared by resolution supported by not less than two thirds of the members present and voting that it is necessary or expedient in the national interest that Parliament should make laws with respect to goods and services taxprovided under article 246A or any matter enumerated in the State List specified in the resolution, it shall be lawful for Parliament to make laws for the whole or any part of the territory of India with respect to that matter while the resolution remains in force.

(2) A resolution passed under clause (1) shall remain in force for such period not exceeding one year as may be specified therein:

Provided that, if and so often as a resolution approving the continuance in force of any such resolution is passed in the manner provided in clause (1), such resolution shall continue in force for a further period of one year from the date on which under this clause it would otherwise have ceased to be in force.

(3) A law made by Parliament which Parliament would not but for the passing of a resolution under clause (1) have been competent to make shall, to the extent of the incompetency, cease to have effect on the expiration of a period of six months after the resolution has ceased to be in force, except as respects things done or omitted to be done before the expiration of the said period.

ARTICLE 250

[Power of Parliament to legislate with respect to any matter in the State List if a Proclamation of Emergency is in operation.]

Part XI. - Relations between the Union and the States.

CLAUSE 5:

In article 250 of the Constitution, in clause (1), after the words, "with respect to", the words, figures and letter"goods and services tax provided under article 246A or" shall be inserted.

250. (1) Notwithstanding anything in this Chapter, Parliament shall, while a Proclamation of Emergency is in operation, have power to make laws for the whole or any part of the territory of India with respect to goods and services tax provided under article 246A or any of the matters enumerated in the State List.

(2) A law made by Parliament which Parliament would not but for the issue of a Proclamation of Emergency have been competent to make shall, to the extent of the incompetency, cease to have effect on the expiration of a period of six months after the Proclamation has ceased to operate, except as things done or omitted to be done before the expiration of the said period.

ARTICLE 268

[Duties levied by the Union but collected and appropriated by the States.]

Part XII. - Finance, Property, Contracts and Suits-

Distribution of Revenues between the Union and the States

CLAUSE 6:

In article 268 of the Constitution, in clause (1), the words "and such duties of excise on medicinal and toilet preparations" shall be omitted.

268. (1) Such stamp duties and such duties of excise on medicinal and toilet preparations as are mentioned in the Union List shall be levied by the Government of India but shall be collected-

(a) in the case where such duties are leviable within any Union territory, by the Government of India, and

(b) in other cases, by the States within which such duties are respectively leviable.

(2) The proceeds in any financial year of any such duty leviable within any State shall not form part of the Consolidated Fund of India, but shall be assigned to that State.

ARTICLE 269

[Taxes levied and collected by the Union but assigned to the States].

Part XII. - Finance, Property, Contracts and Suits-

Distribution of Revenues between the Union and the States

CLAUSE 8:

In article 269 of the Constitution, in clause (1), after the words "consignment of goods", the words, figures and letter "except as provided in article 269A" shall be inserted.

269. (1) Taxes on the sale or purchase of goods and taxes on the consignment of goods except as provided in article 269A shall be levied and collected by the Government of India but shall be assigned and shall be deemed to have been assigned to the States on or after the 1st day of April, 1996 in the manner provided in clause (2).

Explanation.-For the purposes of this clause,-

(a) the expression "taxes on the sale or purchase of goods" shall mean taxes on sale or purchase of goods other than newspapers, where such sale or purchase takes place in the course of inter-State trade or commerce;

(b) the expression "taxes on the consignment of goods" shall mean taxes on the consignment of goods (whether the consignment is to the person making it or to any other person), where such consignment takes place in the course of inter-State trade or commerce.

(2) The net proceeds in any financial year of any such tax, except in so far as those proceeds represent proceeds attributable to Union territories, shall not form part of the Consolidated Fund of India, but shall be assigned to the States within which that tax is leviable in that year, and shall be distributed among those States in accordance with such principles of distribution as may be formulated by Parliament by law.

(3) Parliament may by law formulate principles for determining when a sale or purchase of, or consignment of, goods takes place in the course of inter-State trade or commerce.

ARTICLE 270

[Taxes levied and distributed between the Union and the States . ].

Part XII. - Finance, Property, Contracts and Suits-

Distribution of Revenues between the Union and the States

CLAUSE 10:

In article 270 of the Constitution,-

(i)  in clause (1), for the words, figures and letter "articles 268,268A and 269", the words, figures and letter "articles 268, 269 and 269A" shall be substituted;

(ii)  after clause (1), the following clause shall be inserted, namely:-

"(1A)   Goods and services tax levied and collected by the Government of India, except the tax apportioned with the States under clause (1) of article 269A, shall also be distributed between the Union and the States in the manner provided in clause (2).".

270. (1) All taxes and duties referred to in the Union List, except the duties and taxes referred to in articles 268 , 268A and 269 articles 268, 269 and 269A , respectively, surcharge on taxes and duties referred to in article 271 and any cess levied for specific purposes under any law made by Parliament shall be levied and collected by the Government of India and shall be distributed between the Union and the Statesin the manner provided in clause (2).

(1A)   Goods and services tax levied and collected by the Government of India,except the tax apportioned with the States under clause (1) of article 269A,shall also be distributed between the Union and the States in the manner provided in clause (2).

(2) Such percentage, as may be prescribed, of the net proceeds of any such tax or duty in any financial year shall not form part of the Consolidated Fund of India, but shall be assigned to the States within which that tax or duty is leviable in that year, and shall be distributed among those States in such manner and from such time as may be prescribed in the manner provided in clause (3).

(3) In this article, "prescribed" means, -

(i) until a Finance Commission has been constituted, prescribed by the President by order, and

(ii) after a Finance Commission has been constituted, prescribed by the President by order after considering the recommendations of the Finance Commission.

ARTICLE 271

[Surcharge on certain duties and taxes for purposes of the Union.]

Part XII. - Finance, Property, Contracts and Suits-

Distribution of Revenues between the Union and the States

CLAUSE 11:

In article 271 of the Constitution, after the words "in those articles", the words, figures and letter "except the goods and services tax under article 246A" shall be inserted.

271. Notwithstanding anything in articles 269 and 270, Parliament may at any time increase any of the duties or taxes referred to in those articles, except the goods and services taxunder article 246A, by a surcharge for purposes of the Union and the whole proceeds of any such surcharge shall form part of the Consolidated Fund of India.

ARTICLE 286

[Restrictions as to imposition of tax on the sale or purchase of goods.]

Part XII. - Finance, Property, Contracts and Suits-

Distribution of Revenues between the Union and the States

CLAUSE 13:

In article 286 of the Constitution,-

(i)  in clause (1),-

(A)  for the words "the sale or purchase of goods where such sale or purchase takes place", the words "the supply of goods or of services or both, where such supply takes place" shall be substituted;

(B)  in sub-clause (b), for the word "goods", at both the places where it occurs, the words "goods or services or both" shall be substituted;

(ii)  in clause (2), for the words "sale or purchase of goods takes place", the words "supply of goods or of services or both" shall be substituted;

(iii)  clause(3) shall be omitted.

286. (1) No law of a State shall impose, or authorise the imposition of, a tax on the sale or purchase of goods where such sale or purchase takes place the supply of goods or of services or both, where such supply takes place -

(a) outside the State; or

(b) in the course of the import of the goods goods or services or both into, or export of the goods goods or services or both out of, the territory of India.

(2) Parliament may by law formulate principles for determining when a sale or purchase of goods takes place supply of goods or of services or both in any of the ways mentioned in clause (1).

(3) Any law of a State shall, in so far as it imposes, or authorises the imposition of,-

(a) a tax on the sale or purchase of goods declared by Parliament by law to be of special importance in inter-State trade or commerce; or

(b) a tax on the sale or purchase of goods, being a tax of the nature referred to in sub-clause (b), sub-clause (c) or sub-clause (d) of clause (29A) of article 366,

be subject to such restrictions and conditions in regard to the system of levy, rates and other incidents of the tax as Parliament may by law specify.

ARTICLE 366

Part XIX. - Miscellaneous

CLAUSE 14:

In article 366 of the Constitution,-

(i) after clause (12), the following clause shall be inserted, namely :-

'(12A) "goods and services tax" means any tax on supply of goods, or services or both except taxes on the supply of the alcoholic liquor for human consumption;'

(ii)  afterclause (26), the following clauses shall be inserted, namely:-

'(26A) "Services" means anything other than goods;

26(B) "State" with reference to articles 246A, 268, 269, 269A and article 279A includes a Union territory with Legislature;'

366. Definitions.-In this Constitution, unless the context otherwise requires, the following expressions have the meanings hereby respectively assigned to them, that is to say-

'(12A) "goods and services tax" means any tax on supply of goods or services or both except taxes on the supply of the alcoholic liquor for human consumption.

26---

(26A) "Services" means anything other than goods;

26(B) "State" with reference to articles 246A, 268, 269, 269A and article 279A includes a Union territory with Legislature;'

ARTICLE 368

[Power of Parliament to amend the Constitution and procedure therefor.]

PART XX AMENDMENT OF THE CONSTITUTION

CLAUSE 15:

In article 368 of the Constitution, in clause (2), in the proviso, in clause (a), for the words and figures "article 162 or article 241", the words, figures and letters "article 162, article 241 orarticle 279A" shall be substituted.

368. (1) Notwithstanding anything in this Constitution, Parliament may in exercise of its constituent power amend by way of addition, variation or repeal any provision of this Constitution in accordance with the procedure laid down in this article.

(2) An amendment of this Constitution may be initiated only by the introduction of a Bill for the purpose in either House of Parliament, and when the Bill is passed in each House by a majority of the total membership of that House and by a majority of not less than two-thirds of the members of that House present and voting, it shall be presented to the President who shall give his assent to the Bill and thereupon the Constitution shall stand amended in accordance with the terms of the Bill:

Provided that if such amendment seeks to make any change in-

(a) article 54, article 55, article 73, article 162 or article 241 article 162,article 241 or article 279A, or

(b) Chapter IV of Part V, Chapter V of Part VI, or Chapter I of Part XI, or

(c) any of the Lists in the Seventh Schedule, or

(d) the representation of States in Parliament, or

(e) the provisions of this article,

the amendment shall also require to be ratified by the Legislatures of not less than one-half of the States by resolutions to that effect passed by those Legislatures before the Bill making provision for such amendment is presented to the President for assent.

(3) Nothing in article 13 shall apply to any amendment made under this article.

(4) No amendment of this Constitution (including the provisions of Part III) made or purporting to have been made under this article whether before or after the commencement of section 55 of the Constitution (Forty-second Amendment) Act, 1976] shall be called in question in any court on any ground.

(5) For the removal of doubts, it is hereby declared that there shall be no limitation whatever on the constituent power of Parliament to amend by way of addition, variation or repeal the provisions of this Constitution under this article.]

AMENDMENT OF SIXTH SCHEDULE TO THE CONSTITUTION:

PARAGRAPH

EXISTING PARAGRAPH

PARAGRAPH OF SIXTH SCHEDULE TO THE CONSTITUTION SHALL BE READ AS:

PROPOSAL IN AMENDMENT BILL:

CLAUSE 16: In the Sixth Schedule to the Constitution, in paragraph 8, in sub-paragraph(3),-

(i)in clause (c) , the word "and" occurring at the end shall be omitted;

(ii) in clause (d) , the word "and" shall be inserted at the end;

(iii)after clause (d) , the following clause shall be inserted, namely:-

"(e) taxes on entertainment and amusements."

(3) The District Council for an autonomous district shall have the power to levy and collect all or any of the following taxes within such district, that

is to say-

(a) taxes on professions, trades, callings and employments;

(b) taxes on animals, vehicles and boats;

(c) taxes on the entry of goods into a market for sale therein, and tolls on passengers and goods carried in ferries; and

(d) taxes for the maintenance of schools, dispensaries or roads..

(3) The District Council for an autonomous district shall have the power to levy and collect all or any of the following taxes within such district, that

is to say-

(a) taxes on professions, trades, callings and employments;

(b) taxes on animals, vehicles and boats;

(c) taxes on the entry of goods into a market for sale therein, and tolls on passengers and goods carried in ferries; and

(d) taxes for the maintenance of schools, dispensaries or roads; and

(e)taxes on entertainment and amusements.

AMENDMENT OF SEVENTH SCHEDULE TO THE CONSTITUTION:

CLAUSE 17 OF CONSTITUTION AMENDMENT BILL

PROPOSED ENTRY

EXISTING ENTRY

(a)LIST I-Union List,-

Entry 84 shall be substituted.

84. Duties of excise on the following goods manufactured or produced in India, namely:-

(a)  petroleum crude;

(b)  high speed diesel;

(c)  motor spirit (commonly known as petrol);

(d)  natural gas;

(e)  aviation turbine fuel; and

(f)  tobacco and tobacco products.

84. Duties of excise on tobacco and other goods manufactured or produced in India except-

(a) alcoholic liquors for human consumption;

(b) opium, Indian hemp and other narcotic drugs and narcotics,

but including medicinal and toilet preparations containing alcohol or any substance included in sub-paragraph (b) of this entry.

LIST I(Union List)

Entries 92 and 92C shall be omitted.

92. Taxes on the sale or purchase of newspapers and on advertisements published therein.

92A. Taxes on the sale or purchase of goods other than newspapers, where such sale or purchase takes place in the course of inter-State trade or commerce.

92B. Taxes on the consignments of goods (whether the consignment is to the person making it or to any other person), where such consignment takes place in the course of inter-State trade or commerce.

92C: Tax on Services

92. Taxes on the sale or purchase of newspapers and on advertisements published therein.

92A. Taxes on the sale or purchase of goods other than newspapers, where such sale or purchase takes place in the course of inter-State trade or commerce.

92B. Taxes on the consignments of goods (whether the consignment is to the person making it or to any other person), where such consignment takes place in the course of inter-State trade or commerce.

92C: Tax on Services

LIST II(State List)

Entry 52 shall be omitted.

52. Taxes on the entry of goods into a local area for consumption, use or sale therein.

52. Taxes on the entry of goods into a local area for consumption, use or sale therein.

LIST II(State List)

Entry 54 shall be substituted.

54. Taxes on the sale of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas aviation turbine fuel and alcoholic liquor for human consumption, but not including sale in the course of inter-State trade or commerce or sale in the course of international trade or commerce of such goods .

54. Taxes on the sale or purchase of goods other than newspapers, subject to the provisions of entry 92A of List I.

LIST II(State List)

Entry 55 shall be omitted

55. Taxes on advertisements other than advertisements published in the newspapers and advertisements broadcast by radio or television.

55. Taxes on advertisements other than advertisements published in the newspapers and advertisements broadcast by radio or television.

LIST II(State List)

Entry 62 shall be substituted.

62. Taxes on entertainments and amusements to the extent levied and collected by a Panchayat or a Municipality or a Regional Council or a District Council.

62. Taxes on luxuries, including taxes on entertainments, amusements, betting and gambling.

OTHER PROVISIONS IN THE BILL

CLAUSE 18

Arrangement for assignment of additional tax on supply of goods to States for two years or such other period recommended by Council:

(1) An additional tax on supply of goods, not exceeding one per cent. in the course of inter-State trade or commerce shall, notwithstanding anythingcontained in clause (1) of article 269A, be levied and collected by the Government of India for a period of two years or such other period as the Goods and Services Tax Council may recommend, andsuch tax shall be assigned to the States in the manner providedin sub-section (2).

(2) The net proceeds of additional tax on supply of goods in any financial year, except the proceeds attributable to the Union territories, shall not form part of the Consolidated Fund of India and be deemed to have been assigned to the States from where the supply originates.

(3) The Government of India may, where it considers necessary in the public interest, exempt such goods from the levy of tax under clause (1).

(4) Parliament may, by law, formulate the principles for determining the place of origin from where supply of goods take place in the course of inter-State trade or commerce.

(5) For the purposes of this section, "State" shall have the meaning assigned to it in clause (26B) of article 366 of the Constitution.

CLAUSE 19

Compensation to States for loss of revenue on account of introduction of goods and services tax:

Parliament may, by law, on the recommendation of the Goods and Services Tax Council, provide for compensation to the States for loss of revenue arising on account of implementation of the goods and services tax for such period which may extend to five years.

CLAUSE 20

Transitional provisions:

Notwithstanding anything in this Act, any provision of any law relating to tax on goods or services or on both in force in any State immediately before the commencement of this Act, which is inconsistent with the provisions of the Constitution asamended by this Act shall continue to be inforce until amended or repealed by a competent Legislature or other competent authority or until expiration of one year from such commencement, whichever is earlier.

CLAUSE 21

Power of President to remove difficulties:

(1) If any difficulty arises in giving effect to the provisions of the Constitution as amended by this Act (including any difficulty in relation to the transition from the provisions of the Constitution asthey stood immediately before the date of assent ofthe President to this Act to the provisions of theConstitution as amended by this Act), the President may,by order, make such provisions, including anyadaptation or modification of any provision of theConstitution as amended by this Act or law, as appearto the President t

o be necessary or expedient for the purpose of removing the difficulty:

Provided that no such order shall be made afterthe expiry of three years from the date of suchassent.

(2) Every order made under sub-section (1) shall,as soon as may be after it is made, be laid before eachHouse of Parliament.

G

- Goods and Services Tax Council- creation of Goods and Services Tax Council to examine issues relating to goods and services tax and make recommendations to the Union and the States on parameters like rates, exemption list and threshold limits. The Council shall function under the Chairmanship of the Union Finance Minister and will have the Union Minister of State in charge of Revenue or Finance as member, along with the Minister in-charge of Finance or Taxation or any other Minister nominated by each State Government. It is further provided that every decision of the Council shall be taken by a majority of not less than three-fourths of the weighted votes of the members present and voting in accordance with the following principles:-

(A) the vote of the Central Government shall have a weightage of one-third of the total votes cast, and

(B) the votes of all the State Governments taken together shall have a weightage of two-thirds of the total votes cast in that meeting.

S

- Subsuming of various Central and State indirect taxes and levies like Central Excise Duty, Additional Excise Duties, Excise Duty levied under the Medicinal and Toilet Preparations (Excise Duties) Act, 1955, Service Tax, Additional Customs Duty commonly known as Countervailing Duty (CVD), Special Additional Duty of Customs, and Central Surcharges and Cesses so far as they relate to the supply of goods and services ;

- Subsuming of State Value Added Tax/Sales Tax , Entertainment tax (other than the tax levied by the local bodies), Central Sales Tax( levied by the Centre and collected by the States), Octroi and Entry Tax, Purchase Tax,Luxury Tax, Taxes on lottery, betting and gambling; and State cesses and surcharges in so far as they relate to supply of goods and services;

- Simultaneous power to be conferred : conferring concurrent power upon Parliament and the State Legislatures to make laws governing goods and services tax; compensation to the States for loss of revenue arising on account of implementation of the Goods and Services Tax for a period which may extend to five years; dispensing with the concept of 'declared goods of special importance' under the Constitution;

T

- Tax on inter-State transactions of goods and services - levy of Integrated Goods and Services Tax (IGST) on inter-State transactions of goods and services;

- Tax not exceeding one percent: levy of an additional tax on supply of goods, not exceeding one per cent. In the course of inter-State trade or commerce to be collected by the Government of India for a period of two years, and assigned to the States from where the supply originates;

- Tax on all goods with some exception: coverage of all goods and services, except alcoholic liquor for human consumption, for the levy of goods and services tax. In case of petroleum and petroleum products, it has been provided that these goods shall not be subject to the levy of Goods and Services Tax till a date notified on the recommendation of the Goods and Services Tax Council.