{"id":23655,"date":"2024-01-27T06:54:33","date_gmt":"2024-01-27T06:54:33","guid":{"rendered":"https:\/\/edukemy.com\/blog\/?p=23655"},"modified":"2024-01-27T06:54:35","modified_gmt":"2024-01-27T06:54:35","slug":"explain-the-salient-features-of-the-constitution-one-hundred-and-first-amendment-act-2016-do-you-think-it-is-efficacious-enough-to-remove-cascading-effect-of-taxes-and-provide-for-the-common-nat","status":"publish","type":"post","link":"https:\/\/edukemy.com\/blog\/explain-the-salient-features-of-the-constitution-one-hundred-and-first-amendment-act-2016-do-you-think-it-is-efficacious-enough-to-remove-cascading-effect-of-taxes-and-provide-for-the-common-nat\/","title":{"rendered":"Explain the salient features of the Constitution (One Hundred and First Amendment) Act, 2016. Do you think it is efficacious enough &#8220;to remove cascading effect of taxes and provide for the common national market for goods and services&#8221;? (250 words, 15 marks)"},"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>The Constitution (One Hundred and First Amendment) Act, 2016, marks a significant milestone in the Indian legislative landscape, primarily aimed at ushering in the Goods and Services Tax (GST) regime. This transformative amendment, which came into effect on July 1, 2017, sought to streamline and harmonize the country&#8217;s complex indirect tax structure, replacing a plethora of taxes with a unified GST. One of the salient features of this amendment is the creation of a common national market for goods and services, which endeavors to eliminate the cascading effect of taxes that plagued the pre-GST era. The Act introduces a dual GST model, where both the central and state governments have the authority to levy and collect taxes on the supply of goods and services. This collaborative approach aims to foster cooperative federalism by ensuring a seamless flow of credit and revenue sharing between the center and the states.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p><strong>Tag: <\/strong>Indian constitution, Governance, Current Affairs.\u00a0\u00a0\u00a0<\/p><\/blockquote>\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-6a00957c9de7c\" 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-6a00957c9de7c\"  \/><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-salient-features-of-the-constitution-one-hundred-and-first-amendment-act-2016-do-you-think-it-is-efficacious-enough-to-remove-cascading-effect-of-taxes-and-provide-for-the-common-nat\/#Decoding_the_Question\" title=\"Decoding the Question:&nbsp;&nbsp;&nbsp;\">Decoding the Question:&nbsp;&nbsp;&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-salient-features-of-the-constitution-one-hundred-and-first-amendment-act-2016-do-you-think-it-is-efficacious-enough-to-remove-cascading-effect-of-taxes-and-provide-for-the-common-nat\/#Answer\" title=\"Answer:&nbsp;&nbsp;&nbsp;&nbsp;\">Answer:&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-salient-features-of-the-constitution-one-hundred-and-first-amendment-act-2016-do-you-think-it-is-efficacious-enough-to-remove-cascading-effect-of-taxes-and-provide-for-the-common-nat\/#Features_of_the_GST_Act\" title=\"Features of the GST Act:&nbsp;&nbsp;&nbsp;&nbsp;\">Features of the GST Act:&nbsp;&nbsp;&nbsp;&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-salient-features-of-the-constitution-one-hundred-and-first-amendment-act-2016-do-you-think-it-is-efficacious-enough-to-remove-cascading-effect-of-taxes-and-provide-for-the-common-nat\/#Cascading_Effect_of_Taxes\" title=\"Cascading Effect of Taxes:&nbsp;&nbsp;\">Cascading Effect of Taxes:&nbsp;&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/edukemy.com\/blog\/explain-the-salient-features-of-the-constitution-one-hundred-and-first-amendment-act-2016-do-you-think-it-is-efficacious-enough-to-remove-cascading-effect-of-taxes-and-provide-for-the-common-nat\/#Challenges_to_the_Implementation_of_the_GST_Act\" title=\"Challenges to the Implementation of the GST Act:&nbsp;&nbsp;&nbsp;\">Challenges to the Implementation of the GST Act:&nbsp;&nbsp;&nbsp;<\/a><\/li><\/ul><\/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-salient-features-of-the-constitution-one-hundred-and-first-amendment-act-2016-do-you-think-it-is-efficacious-enough-to-remove-cascading-effect-of-taxes-and-provide-for-the-common-nat\/#In_case_you_still_have_your_doubts_contact_us_on_9811333901\" title=\"In case you still have your doubts, contact us on 9811333901.&nbsp;\">In case you still have your doubts, contact us on 9811333901.&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-salient-features-of-the-constitution-one-hundred-and-first-amendment-act-2016-do-you-think-it-is-efficacious-enough-to-remove-cascading-effect-of-taxes-and-provide-for-the-common-nat\/#Visit_our_YouTube_Channel_%E2%80%93_here\" title=\"Visit our YouTube Channel &#8211;&nbsp;here\">Visit our YouTube Channel &#8211;&nbsp;here<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Decoding_the_Question\"><\/span><strong>Decoding the Question:<\/strong>&nbsp;&nbsp;&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>In Introduction, try to briefly write about 101<sup>st<\/sup> Constitutional Amendment Act, 2016.\u00a0<\/strong>\u00a0\u00a0\u00a0<\/li><li><strong>In Body,\u00a0<\/strong>\u00a0\u00a0\u00a0<\/li><li><strong>Discuss various features of the Act and write their efficacy.<\/strong>\u00a0\u00a0\u00a0<\/li><li><strong>Mention some issues in implementation and suggest some measures to address issues.\u00a0<\/strong>\u00a0\u00a0\u00a0<\/li><li><strong>In Conclusion, write the overall significance of the act in removing cascading effects and providing a common national market.\u00a0<\/strong>\u00a0\u00a0\u00a0<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Answer\"><\/span><strong>Answer:&nbsp;<\/strong>&nbsp;&nbsp;&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Constitution (One Hundred and First Amendment) Act, 2016 provides for the introduction of Goods and Services Tax (GST) in India. GST is one of the biggest indirect tax reforms in India. The GST is a Value Added Tax (VAT) and is proposed to be a comprehensive <strong>indirect tax levied on the manufacture, sale, and consumption of goods<\/strong> as well as services at the national level which will <strong>replace all indirect taxes levied on goods and services by a single tax<\/strong> on the supply, right from the manufacturer to the consumer.\u00a0\u00a0\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Features_of_the_GST_Act\"><\/span><strong>Features of the GST Act:&nbsp;<\/strong>&nbsp;&nbsp;&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>It<strong> amalgamates a large number of Central and State taxes<\/strong> (like Central Excise Duty, Countervailing Duty, Service Tax, value-added tax, octroi, etc) into a single tax.\u00a0\u00a0<\/li><li>It inserts a new Article 246A in the Constitution to give the central and state governments the concurrent power to make laws on the taxation of goods and services.\u00a0\u00a0<\/li><li>Only the center may levy and collect an integrated GST in the course of inter-state trade \u2013 to be divided between the center and the states.\u00a0\u00a0<\/li><li>It amalgamates a large number of Central and State taxes (like Central Excise Duty, Countervailing Duty, Service Tax, value-added tax, octroi, etc) into a single tax.\u00a0\u00a0<\/li><li>It inserts a new Article 246A in the Constitution to give the central and state governments the concurrent power to make laws on the taxation of goods and services.\u00a0\u00a0<\/li><li>Only the center may levy and collect an integrated GST in the course of inter-state trade \u2013 to be divided between the center and the states.\u00a0\u00a0<\/li><li>It provides for the constitution of a <strong>GST Council<\/strong> to develop a harmonized national market of goods and services.\u00a0\u00a0<\/li><li>It makes provision for <strong>compensation to states for revenue losses<\/strong> arising out of the implementation of the GST.\u00a0\u00a0<\/li><li>It provides for the constitution of a <strong>GST Council<\/strong> to develop a harmonized national market of goods and services.\u00a0\u00a0<\/li><li>It makes provision for <strong>compensation to states for revenue losses<\/strong> arising out of the implementation of the GST.\u00a0\u00a0<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Cascading_Effect_of_Taxes\"><\/span><strong>Cascading Effect of Taxes:<\/strong>&nbsp;&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>GST follows a <strong>multi-stage collection mechanism<\/strong> in which tax is collected at every stage and the credit of tax paid at the previous stage is available as a set-off at the next stage of the transaction.\u00a0\u00a0\u00a0<\/li><li>This means that tax paid on inputs is deducted from the tax payable on the output produced<strong> (input tax credit)<\/strong>.\u00a0\u00a0\u00a0<\/li><li>This is expected to mitigate the ill effects of cascading. However, the effectiveness of this will depend on the level of digital literacy of the traders and the efficient functioning of the GST Network (GSTN).\u00a0\u00a0<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-image size-full\"><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\" width=\"1280\" height=\"300\" data-src=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/10.png\" alt=\"\" class=\"wp-image-42412 lazyload\" data-srcset=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/10.png 1280w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/10-1170x274.png 1170w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/10-585x137.png 585w\" data-sizes=\"(max-width: 1280px) 100vw, 1280px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1280px; --smush-placeholder-aspect-ratio: 1280\/300;\" \/><\/a><figcaption><a href=\"https:\/\/edukemy.com\/upsc\/upsc-essay?utm_source=Blog&amp;utm_medium=Link&amp;utm_campaign=Essay\">UPSC Essay Course<\/a><\/figcaption><\/figure>\n\n\n\n<p><strong>\u2018One Nation, One Tax and One Market\u2019: <\/strong>GST aims to make India a common national market through:&nbsp;&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>uniform tax<\/strong> <strong>rates<\/strong> and procedures, and&nbsp;&nbsp;<\/li><li><strong>removal of hurdles in inter-State transactions<\/strong> as only IGST will be applied on inter-State trade.&nbsp;&nbsp;<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Challenges_to_the_Implementation_of_the_GST_Act\"><\/span><strong>Challenges to the Implementation of the GST Act:<\/strong>&nbsp;&nbsp;&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Some goods like petroleum crude, motor spirit\u202fetc. were kept outside of GST preview which <strong>limits its coverage<\/strong>.\u00a0\u00a0\u00a0<\/li><li>Despite its implementation, some of the provisions of the GST law are <strong>still ambiguous.<\/strong>\u00a0\u00a0\u00a0<\/li><li>There <strong>is no efficient government helpline<\/strong> for taxpayers to discuss their queries.\u00a0\u00a0\u00a0<\/li><li>It may <strong>substantially erode the state&#8217;s power to manage<\/strong> its taxation and resource generation.\u00a0\u00a0\u00a0<\/li><li>It seeks <strong>to treat unequal states equally<\/strong>; the large manufacturing states lose revenue on a bigger scale. For example: Maharashtra, etc.\u00a0\u00a0\u00a0<\/li><li>The <strong>input credit cannot be cross-utilized, <\/strong>and the <strong>exclusion of large informal and unorganized<\/strong> sectors still remains a big issue.\u00a0\u00a0\u00a0\u00a0<\/li><\/ul>\n\n\n\n<p>The Goods and Service Tax (GST) is a <strong>revolutionary tax system<\/strong> by removes the cascading effect and provides for a common national market for goods and services. There is a spurt in GST collections in recent times, which reflects both economic recovery and increasing formalization and tax compliance. However, <strong>reform is needed to impart greater competitiveness, a gradual course correction<\/strong> should continue for a comprehensive tax mechanism.\u00a0<\/p>\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=\"In_case_you_still_have_your_doubts_contact_us_on_9811333901\"><\/span><strong>In case you still have your doubts, contact us on 9811333901.<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>For UPSC Prelims Resources,&nbsp;<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;&nbsp;<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;&nbsp;<a href=\"https:\/\/bit.ly\/3vOD8sU\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><\/li><li>2. Be Exam Ready by Practicing Daily MCQs &#8211;&nbsp;<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;&nbsp;<a href=\"https:\/\/bit.ly\/3bE2y5J\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><\/li><li>4. Mains Answer Writing Practice &#8211;&nbsp;<a href=\"https:\/\/bit.ly\/3mZuVxl\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Visit_our_YouTube_Channel_%E2%80%93_here\"><\/span>Visit our YouTube Channel &#8211;&nbsp;<a href=\"https:\/\/www.youtube.com\/@ShabbirsEduKemyforIAS\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><span class=\"ez-toc-section-end\"><\/span><\/h4>\n","protected":false},"excerpt":{"rendered":"<p>a significant milestone in the Indian legislative landscape, primarily aimed at ushering in the Goods and Services Tax (GST) regime.<\/p>\n","protected":false},"author":17,"featured_media":23656,"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":[1500],"tags":[176,1516,142,232,145,140],"class_list":["post-23655","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-upsc-mains-solved-paper-gs-2","tag-general-studies-2","tag-goods-and-services","tag-previous_year_questions","tag-upsc","tag-upsc-mains-question-paper","tag-upsc_preparation_strategy"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts\/23655","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=23655"}],"version-history":[{"count":1,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts\/23655\/revisions"}],"predecessor-version":[{"id":23657,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts\/23655\/revisions\/23657"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/media\/23656"}],"wp:attachment":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/media?parent=23655"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/categories?post=23655"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/tags?post=23655"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}