Hundred and First Amendment Act, 2016

• Paved the way for the introduction of the goods and services tax (GST) regime in the country. The GST shall replace a number of indirect taxes being levied by the Union and the State Government. The proposed Central and State GST will be levied on all transactions involving supply of goods and services, except those which are kept out of the purview of the GST. Accordingly, the amendment made the following provisions:
• Conferred concurrent taxing powers upon the Parliament and the State Legislatures to makes laws for levying GST on every transaction of supply of goods or services or both.
• Dispensed the concept of “declared goods of special importance” under the constitution.
• Provided for the levy of Integrated GST on inter-state transactions of goods and services.
• Provided for the establishment of a Goods and Services Tax Council by a presidential order.
• Made the provision of compensation to the states for loss of revenue arising on account of introduction of GST for a period of five years.
• Substituted and omitted certain entries in the Union and State Lists of the Seventh Schedule.