• Goods & Services Tax is prevalent in almost 160 countries around the world and France was the first country to introduce the same in 1954. 
• GST is one of the biggest taxation reforms of independent India.  
• It aims at creating a single, unified Indian market throughout the Nation.  
• It is an indirect tax levy on goods as well as services at the national level. 
• GST is a consumption based tax which is levied on the basis of “Destination principle.”
• Here burdon born by final consumer.
• It offers comprehensive & continous chain of tax credit.   
• Its main objective is to consolidate multiple indirect tax levies into a single tax.

Constitution (101st Amendment) Act, 2016

The Constitution of India has been amended by the Constitution (One Hundred and First Amendment) Act, 2016 for the purpose on GST on 8^th september 2016 on desent of president. Following Articles inserted in constitution : 

1. Article 246A Inserted -

• Oversides Article 246.
• Give power to parliament and each state legislature to levy GST on goods & services. 
• Only parliament can levy GST on inter state supplies.

2. Article 269A Inserted -

• Give power to parliament to levy and collect IGST on inter-state supplies.
• Such IGST shall be distributed between center and states.
• Parliament has power to determine place of supply and time of supply.
• Import and export of goods, services or both shall be deemed to be inter-state supply.

3. Article 279A Inserted -

​The President shall, within 60 days from the date of commencement of the Constitution (One Hundred and First Amendment) Act, 2016, by order, constitute a Council to be called the GST Council. 

4. Article 254 -

Any difference arises between law made by parliment and law made by state, than law made by parliament prevail.

The following subject matters kept outside the purview of GST. As such these are taxed under the existing laws of centre and states as the case may be -

i) Alcohol for human consumption

ii) Entertainment tax collected by local bodies

iii) Property taxes, such as stamp duty

iv) Electricity 

v) Petroleum Products -

• petroleum crude,
• motor spirit (petrol),
• high speed diesel,
• natural gas and aviation turbine fuel

Note - Tabacco and tabacco products would be subject to GST in addition the center would have power to levy Central Excise duty on  tabacco and tabacco products.