GST Amendment Bill, 2014

BRIEF POINTS/OBJECTS OF GST AMENDMENT BILL, 2014
(a)The constitutional (One Hundred and twenty second amendment) Bill, 2014 was introduced in the Lok Sabha on December 19, 2014 by Minister of Finance, Mr. Arun Jaitely.
(b) The Bill was introduced to  introduce the goods and services tax .  Hence Constitution was amended.  It provides for subsuming of various Central & State Indirect Taxes so far as they relate to supply of goods and services. (other than taxes levied by local bodies).
(c) dispensing with the concept of ‘declared goods of special importance’ ;
(d) levy of Integrated Goods and Services Tax on inter-State transactions of goods and services;
(e) 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; As Introduced In Lok Sabha Bill No. 192 of 2014 xxiii
(f) conferring concurrent power upon Parliament and the State Legislatures to make laws governing goods and services tax;
(g) 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.
(h) 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; (i) 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 weight age of two-thirds of the total votes cast in that meeting. Illustration: In terms of clause (9) of the proposed article 279A, the “weighted votes of the members present and voting” in favour of a proposal in the Goods and Services Tax Council shall be determined as under:— WT = WC+WS Where, WT = WC+WS ( WST /SP) × SF Background Material on GST xxiv Wherein— WT = Total weighted votes of all members in favour of a proposal. WC = Weighted vote of the Union = 1 3 i.e., 33.33% if the Union is in favour of the proposal and be taken as “0” if, Union is not in favour of a proposal. WS = Weighted votes of the States in favour of a proposal. SP = Number of States present and voting. WST = Weighted votes of all States present and voting i.e. 1 3 i.e., 66.67% SF = Number of States voting in favour of a proposal.
(j) Clause 20 of the proposed Bill makes transitional provisions to take care of any inconsistency which may arise with respect to any law relating to tax on goods or services or on both in force in any State on the commencement of the provisions of the Constitution as amended by this Act within a period of one year.