Document Fragment View

Matching Fragments

(e) the rates including floor rates with bands of goods and services tax;

(f) any special rate or rates for a specified period, to raise additional resources during any natural calamity or disaster;

(g) special provision with respect to the States of Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand; and

(h) any other matter relating to the goods and services tax, as the Council may decide.

(5) The Goods and Services Tax Council shall recommend the date on which the goods and services tax be levied on petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel.

12.5. Section 14 says that after Clause (12) of Article 366 a new clause being Clause (12-A) shall be inserted. Likewise after Clause 26, Clauses (26-A) and (26-B) shall be inserted. 12.6. A crucial amendment made was in the VII Schedule to the Constitution. As per Section 17 (a) in List I (Union List) for Entry 84, the following entry shall be substituted:

"84. Duties of excise on the following goods manufactured or produced in India, namely:--- 
    (a)    Petroleum crude;
    (b)    High speed diesel;
    (c)    Motor spirit (commonly known as petrol);
    (d)    Natural gas;
    (e)    Aviation turbine fuel; and
    (f)    Tobacco and tobacco products.";


12.7.        Entries 92 and 92 C have been omitted.
12.8. Likewise, as per Section 17 (b), in List II (State List) Entry 52 has been omitted and for the existing Entry 54 the following entry has been substituted:
"54. Taxes on the sale of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas, aviation turbine fuel and alcoholic liquor for human consumption, but not including sale in the course of inter-State trade or commerce or sale in the course of international trade or commerce of such goods."
"54. Taxes on the sale of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas, aviation turbine fuel and alcoholic liquor for human consumption, but not including sale in the course of inter-State trade or commerce or sale in the course of international trade or commerce of such goods".

88 Thus, on and from 16.09.2016, the competence of the State Legislature got truncated; it had competence to enact law only on the fields mentioned in Entry 54 as substituted i.e., regarding taxes on sale of petroleum crude, high speed diesel, motor spirit (petrol), natural gas, aviation turbine fuel and alcoholic liquor for human consumption. However, there is a further restriction in as much as the taxes should not be on sale of such goods in the course of inter-State trade or commerce or sale in the course of international trade or commerce of such goods. 89 The Second Amendment Act, as already noticed, enhances the limitation period from four years to six years with respect to assessment, reassessment, revision etc. It covers all general goods and is not confined to the five petroleum products and alcoholic liquor for human consumption as mentioned in the substituted Entry 54 of List II. Therefore, State Legislature of Telangana did not have the competence post 16.09.2016 to legislate the Second Amendment Act which could be traceable to Article 246 read with Entry 54 of List II of the VII Schedule to the Constitution.