GST Bill is not money bill; its constitutional amendment bill

Q.  Which of the following is/are true regarding recent GST Bill?

1) Recent Goods and Services Tax (GST) Bill is a money bill.
2) Being a money bill, Rajya Sabha cannot move amendments to the recently passed GST Bill.
- Published on 04 Aug 16

a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2

ANSWER: Neither 1 nor 2
 
  • GST Bill is a constitutional Amendment Bill. Rajya Sabha can make amendments to the bill.
  • It is not a money bill as it makes changes to the constitution for altering the way taxes are levied, collected and divided among the centre and the state.
  • The Bill amends the Constitution to give concurrent powers to Parliament and state legislatures to levy a Goods and Services tax (GST).
  • This implies that the centre will levy a central GST (CGST), while states will be permitted to levy a state GST (SGST).
  • For goods and services that pass through several states, or imports, the centre will levy another tax, the Integrated GST (IGST).

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