In the year ________, the Indian Constitution was amended to empower the state governments and the Union Government to come out with laws to impose the Goods and Services Tax.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → 2016
The Constitution was amended in 2016 to let the state governments and the Union Government make laws for GST. GST itself was then introduced in July 2017.
NCERT (2026-27): “Tax Reforms: … Efforts have also been made to reform the indirect taxes, taxes levied on goods and services to facilitate the establishment of a common national market. In the year 2016, Indian constitution was amended to empower state governments and union Government to come out with laws to impose Goods and Services Tax. This has led to introduction of GST in India. This is expected to generate additional revenue for the government, reduce tax evasion and create ‘one nation, one tax and one market’. …” Glossary: “Goods and Services Tax – It is a single indirect tax on the supply of goods and services. It was introduced in July 2017 by abolishing a variety of taxes, such as sales tax and excise that prevailed in India. Under GST, tax is imposed on the basis of value addition at each stage of the movement of goods and services. Different slabs of tax rates, such as 0 per cent, 5 per cent, 12 per cent, 18 per cent and 28 per cent, are imposed on almost all goods and services. This slab is same throughout the country.” |