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Goods and Services Tax (GST)

Constitutional Framework

GST is a comprehensive indirect tax on the supply of goods and services, replacing a fragmented system of central and state levies (excise duty, VAT, service tax, octroi, etc.). It was introduced through the Constitution (101st Amendment) Act, 2016, which inserted Article 246A — a special provision granting concurrent powers to both Parliament and State Legislatures to legislate on GST, with Parliament having exclusive jurisdiction over interstate trade (IGST).

Key details
  • Article 246A begins with a non-obstante clause ("Notwithstanding anything in Articles 246 and 254"), making it override the Seventh Schedule's Union/State/Concurrent Lists for GST purposes.
  • Article 279A constitutes the GST Council — a joint forum of the Centre and States, chaired by the Union Finance Minister, with state finance ministers as members. Decisions require a three-fourths majority weighted vote (Centre has one-third weight; states collectively have two-thirds).
  • GST came into effect on July 1, 2017.
  • The 101st Amendment also inserted Article 269A (for levy and collection of IGST on interstate supplies) and abolished Article 268A (which had dealt with service tax sharing).
In the news

Tracked since March 01, 2026 · last seen July 30, 2026 · updates as the daily brief publishes

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