As we know the President of India, on Thursday (September 08, 2016) gave assent to the Constitution Amendment Bill on Goods and Services Tax (GST), a major step towards rolling out the new indirect tax regime which the Modi government wants to come into effect from April 1 next year. The passage of the bill will pave the way for setting up of a GST council that will decide the tax rate, cess and surcharges etc.
After the assent of the President, the bill has become an Act, i.e. THE CONSTITUTION (ONE HUNDRED AND FIRST
AMENDMENT) ACT, 2016.
Section 12 of the said Constitution (101st Amendment) Act, 2016 provides that the President shall, within sixty 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 Goods and Services Tax Council. In this regard, The Central Government vide Notification S.O. 2915(E).- [F. No. 31011 / 09 / 2015-SO (ST)] dated September 10, 2016, has appointed 12th day of September, 2016 as the date on which the provisions of Section 12 of the Constitution (101st Amendment) Act, 2016 shall come into force.
Please note that Section 12 of the Constitutional Amendment Act, 2016 (i.e. insertion of new Article 279A), provides that the President shall within 60 days, from date of commencement of the Constitutional Amendment Act, by order, constitute a Council to be called the Goods and Services Tax Council (“GST Council”).
Further, Section 1(2) of the Constitutional Amendment Act empowers the Central Government to appoint, by notification in the Official Gazette, different dates for different provisions of this Act.
On a conjoint reading of Section 12 and 1(2), it is clear that the GST Council shall be constituted within 60 days from September 12, 2016.
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