{"id":14563,"date":"2023-11-03T05:47:18","date_gmt":"2023-11-03T05:47:18","guid":{"rendered":"https:\/\/edukemy.com\/blog\/?p=14563"},"modified":"2024-02-26T09:40:03","modified_gmt":"2024-02-26T09:40:03","slug":"explain-the-significance-of-the-101st-constitutional-amendment-act-to-what-extent-does-it-reflect-the-accommodative-spirit-of-federalism-15m-250-words","status":"publish","type":"post","link":"https:\/\/edukemy.com\/blog\/explain-the-significance-of-the-101st-constitutional-amendment-act-to-what-extent-does-it-reflect-the-accommodative-spirit-of-federalism-15m-250-words\/","title":{"rendered":"Explain the significance of The 101st Constitutional Amendment act. To what extent does it reflect the accommodative spirit of federalism? (15M, 250 words)"},"content":{"rendered":"<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a href=\"https:\/\/edukemy.com\/upsc\/upsc-gs-advance-and-mentorship-program-ampcsat?utm_source=Blog&amp;utm_medium=Link&amp;utm_campaign=GS+Advanced\" target=\"_blank\" rel=\"noreferrer noopener\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1280\" height=\"300\" src=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/07\/Attempt-our-Daily-Weekly-Current-Affairs-Quiz-now-8.png\" alt=\"\" class=\"wp-image-43397\" srcset=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/07\/Attempt-our-Daily-Weekly-Current-Affairs-Quiz-now-8.png 1280w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/07\/Attempt-our-Daily-Weekly-Current-Affairs-Quiz-now-8-1170x274.png 1170w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/07\/Attempt-our-Daily-Weekly-Current-Affairs-Quiz-now-8-585x137.png 585w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><\/a><\/figure><\/div>\n\n\n<p><br>In the Mains 2023 GS Paper 2, the significance of the 101st Constitutional Amendment Act and its reflection of the accommodative spirit of federalism were queried.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p><strong>UPSC Mains General Studies Paper \u2013 1 Mains 2023<\/strong><\/p><\/blockquote>\n\n\n\n<p><a href=\"https:\/\/edukemy.com\/blog\/upsc-2023-gs-1-question-paper\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>UPSC Mains Civil Services IAS Exam Question Paper \u2013 2023<\/strong><\/a><\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_73 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<label for=\"ez-toc-cssicon-toggle-item-69d8393f7f3ae\" class=\"ez-toc-cssicon-toggle-label\"><p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-cssicon\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d8393f7f3ae\"  \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/edukemy.com\/blog\/explain-the-significance-of-the-101st-constitutional-amendment-act-to-what-extent-does-it-reflect-the-accommodative-spirit-of-federalism-15m-250-words\/#Introduction\" title=\"Introduction&nbsp;\">Introduction&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/edukemy.com\/blog\/explain-the-significance-of-the-101st-constitutional-amendment-act-to-what-extent-does-it-reflect-the-accommodative-spirit-of-federalism-15m-250-words\/#Body\" title=\"Body&nbsp;&nbsp;&nbsp;&nbsp;\">Body&nbsp;&nbsp;&nbsp;&nbsp;<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/edukemy.com\/blog\/explain-the-significance-of-the-101st-constitutional-amendment-act-to-what-extent-does-it-reflect-the-accommodative-spirit-of-federalism-15m-250-words\/#Significance_of_101st_constitutional_amendment_act\" title=\"Significance of 101st constitutional amendment act :-&nbsp;\">Significance of 101st constitutional amendment act :-&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/edukemy.com\/blog\/explain-the-significance-of-the-101st-constitutional-amendment-act-to-what-extent-does-it-reflect-the-accommodative-spirit-of-federalism-15m-250-words\/#GST_reflecting_accommodative_spirit_of_federalism\" title=\"GST reflecting accommodative spirit of federalism&nbsp;\">GST reflecting accommodative spirit of federalism&nbsp;<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/edukemy.com\/blog\/explain-the-significance-of-the-101st-constitutional-amendment-act-to-what-extent-does-it-reflect-the-accommodative-spirit-of-federalism-15m-250-words\/#Challenges\" title=\"Challenges:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;\">Challenges:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/edukemy.com\/blog\/explain-the-significance-of-the-101st-constitutional-amendment-act-to-what-extent-does-it-reflect-the-accommodative-spirit-of-federalism-15m-250-words\/#Conclusion\" title=\"Conclusion&nbsp;&nbsp;&nbsp;&nbsp;\">Conclusion&nbsp;&nbsp;&nbsp;&nbsp;<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/edukemy.com\/blog\/explain-the-significance-of-the-101st-constitutional-amendment-act-to-what-extent-does-it-reflect-the-accommodative-spirit-of-federalism-15m-250-words\/#In_case_you_still_have_your_doubts_contact_us_on_8792740517\" title=\"In case you still have your doubts, contact us on 8792740517.&nbsp;\">In case you still have your doubts, contact us on 8792740517.&nbsp;<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Introduction\"><\/span>Introduction&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The 101st Constitutional Amendment act of 2016 paved the way for the introduction of a new tax regime called \u201cGoods and Service Tax\u201d. The amendment inserted a new article 279a in the constitution. This step was instrumental in reflecting the accommodative spirit of Indian federalism, fostering cooperation and consensus between the central and state governments.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Body\"><\/span>Body&nbsp;&nbsp;&nbsp;&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Significance_of_101st_constitutional_amendment_act\"><\/span>Significance of 101st constitutional amendment act :-&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ol class=\"wp-block-list\"><li><strong>Simplification of Tax Structure :-<\/strong> Complex tax structure of indirect taxes was replaced by a single tax called GST and creation of a unified national market as \u201cOne nation One tax\u201d.&nbsp;<\/li><li><strong>Improved tax compliance :- <\/strong>Technology driven. Example &#8211; All returns to be filled online and the GSTIN network designed for GST related transactions.&nbsp;<\/li><li><strong>Reduced Tax evasion :- <\/strong>GST laws used the concept of automatic matching of invoices on the portal to prevent tax evasion. Example &#8211;&nbsp; In Feb 2023 GST audit led to detention of Rs 22000 cr tax evasion. Example &#8211; lowering the threshold of e-invoice for business to business transactions in order to curb tax evasion.&nbsp;<\/li><li><strong>Elimination of entry tax :- <\/strong>Before GST, states imposed entry taxes on goods entering their territory which acted as barriers for interstate trade. After GST it got abolished.&nbsp;<\/li><li><strong>Boost to economy :- <\/strong>helps in promoting ease of doing business by reducing expenditure cost.&nbsp;<\/li><\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"GST_reflecting_accommodative_spirit_of_federalism\"><\/span>GST reflecting accommodative spirit of federalism&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ol class=\"wp-block-list\"><li><strong>Covid compensation regime :- <\/strong>rebates given to states during covid crisis&nbsp;&nbsp;<\/li><li><strong>Dual structure :-<\/strong> GST shows a dual taxation structure consisting of CGST and SGST between Centre and state respectively which allows both the governments to independently levy and collect taxes on the same transaction. Example &#8211; On laptop purchase both state and Centre can collect taxes independently.&nbsp;<\/li><li><strong>GST Council :-<\/strong> GST council in itself reflects the essence of accommodative federalism as it holds participation of both Centre and state in decision making as well as equal representation of all the states.&nbsp;<\/li><li><strong>Consensus building :- <\/strong>The financial relationship in India between Centre and state is more skewed in favour of Centre, even after knowing this fact state still went ahead and ratified GST that shows the accommodative spirit of federalism&nbsp;<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Challenges\"><\/span>Challenges:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ol class=\"wp-block-list\"><li><strong>Complex Tax Structure: <\/strong>GST in India&#8217;s multi-tier tax system complicates rates and compliance, posing hurdles for SMEs.&nbsp;<\/li><li><strong>Compliance Demands: <\/strong>GST mandates multiple returns and extensive record-keeping, especially challenging for small businesses.&nbsp;<\/li><li><strong>Tax Rate Changes<\/strong>: Frequent GST rate revisions by the Council disrupt business planning and decision-making.&nbsp;<\/li><li><strong>State Revenue Gaps:<\/strong> Post-GST, some states reported revenue shortfalls, raising autonomy and compensation concerns.&nbsp;<\/li><li><strong>Tech Hurdles:<\/strong> Technical issues, system downtime, and online filing problems hinder GST implementation.&nbsp;<\/li><li><strong>Transition Struggles:<\/strong> Businesses faced difficulties during the initial GST transition, adapting to new rules and processes.&nbsp;<\/li><li><strong>Input Tax Credit Complexity<\/strong>: Issues related to Input Tax Credit (ITC), especially for capital goods and services, remain intricate&nbsp;<\/li><\/ol>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><a href=\"https:\/\/edukemy.com\/upsc\/upsc-essay?utm_source=Blog&amp;utm_medium=Banner&amp;utm_campaign=Essay\" target=\"_blank\" rel=\"noreferrer noopener\"><img decoding=\"async\" data-src=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/UPSC-Essay-Course-1280\u00d7300-1-3.svg\" alt=\"\" class=\"wp-image-42688 lazyload\" width=\"781\" height=\"182\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 781px; --smush-placeholder-aspect-ratio: 781\/182;\" \/><\/a><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion&nbsp;&nbsp;&nbsp;&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Hence,<\/strong> The 101st Constitutional Amendment Act, through the introduction of GST, represents a significant step toward economic integration and cooperative federalism in India. A continued commitment to cooperative federalism and periodic refinements in the GST framework can lead to a more inclusive and effective tax regime in India.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"In_case_you_still_have_your_doubts_contact_us_on_8792740517\"><\/span><strong>In case you still have your doubts, contact us on 8792740517.<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>For UPSC Prelims Resources, <a href=\"https:\/\/edukemy.com\/upsc-cse-prelims-resource-centre\" target=\"_blank\" rel=\"noreferrer noopener\">Click here<\/a><\/p>\n\n\n\n<p>For Daily Updates and Study Material: <\/p>\n\n\n\n<p>Join our Telegram Channel &#8211; <a href=\"https:\/\/t.me\/WithEdukemy4IAS\" target=\"_blank\" rel=\"noreferrer noopener\">Edukemy for IAS<\/a> <\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>1. Learn through Videos &#8211; <a href=\"https:\/\/bit.ly\/3vOD8sU\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a> <\/li><li>2. Be Exam Ready by Practicing Daily MCQs &#8211; <a href=\"https:\/\/bit.ly\/3Q9z2nF\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a> <\/li><li>3. Daily Newsletter &#8211; Get all your Current Affairs Covered &#8211; <a href=\"https:\/\/bit.ly\/3bE2y5J\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a> <\/li><li>4. Mains Answer Writing Practice &#8211; <a href=\"https:\/\/bit.ly\/3mZuVxl\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>The 101st Constitutional Amendment act of 2016 paved the way for the introduction of a new tax regime called \u201cGoods and Service Tax\u201d.<\/p>\n","protected":false},"author":17,"featured_media":14595,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[185],"tags":[186,354,142,232,145,353],"class_list":["post-14563","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-upsc-mains-solved-papers","tag-general-studies-1","tag-history","tag-previous_year_questions","tag-upsc","tag-upsc-mains-question-paper","tag-upsc-model-answers"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts\/14563","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/comments?post=14563"}],"version-history":[{"count":9,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts\/14563\/revisions"}],"predecessor-version":[{"id":29847,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts\/14563\/revisions\/29847"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/media\/14595"}],"wp:attachment":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/media?parent=14563"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/categories?post=14563"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/tags?post=14563"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}