Which of the following statements regarding Article 270 are correct? 1) Article 270 governs the sharing of taxes between the Unio…

Question

Which of the following statements regarding Article 270 are correct?

1) Article 270 governs the sharing of taxes between the Union and States, including proceeds from GST.

2) After the 101st Constitutional Amendment, Article 270 includes provisions for distributing revenue from Union taxes and GST.

3) The GST Compensation Cess is also shared between the Union and States under Article 270.

1. A. 1 and 3 only
2. B. 1 Only
3. C. 1 & 2 only (Correct answer)
4. D. 2 & 3 only

Correct Answer

Option C — 1 & 2 only

Detailed Solution & Explanation

The correct answer is 1 & 2 only.

Key Points

• Statement 1 is correct: Article 270 governs the distribution of taxes between the Union and the States, and now covers GST proceeds.
• Statement 2 is correct: the 101st Constitutional Amendment (2016), which introduced GST, amended Article 270 to bring the Union's GST share within the divisible pool.
• Statement 3 does not hold, so the correct combination is statements 1 and 2 only.

Additional Information

• The share of central taxes going to the States is recommended by the Finance Commission under Article 280; the 15th Finance Commission set it at 41%.
• Article 246A, also inserted by the 101st Amendment, gives Parliament and the State legislatures concurrent power to make GST law.
• Cesses and surcharges levied under Article 271 stay outside the divisible pool, which is why States have objected to their growing share.

प्रश्न (हिन्दी में)

अनुच्छेद 270 के संबंध में निम्नलिखित में से कौन से कथन सही हैं?

1) अनुच्छेद 270 केंद्र और राज्यों के बीच करों (GST सहित) के बंटवारे को नियंत्रित करता है।

2) 101वें संविधान संशोधन के बाद, अनुच्छेद 270 में संघीय करों और GST से प्राप्त राजस्व के वितरण के प्रावधान शामिल हैं।

3) GST क्षतिपूर्ति उपकर भी अनुच्छेद 270 के तहत केंद्र और राज्यों के बीच साझा किया जाता है।

1. A. केवल 1 और 3
2. B. केवल 1
3. C. केवल 1 और 2
4. D. केवल 2 और 3