What is 88th Amendment Act of 2003?
On March 7, 2003, a Constitution (Eighty-eighth Amendment) Bill was introduced, which sought to amend the Constitution to include service tax as a specific entry in the union list and develop principles for determining the modalities of levying service tax by the Union Government and collecting the proceeds by the Central and State Governments.
The Empowered Committee of State Finance Ministers believes that states should be given the right to tax services and that they should be able to collect an appropriate service tax on significant benefits. The principles under which the states and the federal government would collect and apply service taxes would have to be established by legislation. Service tax and excise duty will be replaced by a new tax known as the Goods and Services Tax (GST).
88th Amendment Act 2003 of Indian Constitution
By 88th Amendment Act of 2003 amended the Constitution, and the government has made significant modifications to Article 270. This act was created to allow Parliament to define legislative guidelines for determining the Central Government’s modalities of levying the service tax and collecting the proceeds jointly by the Central Government and State Governments.
Table of Content
- What is 88th Amendment Act of 2003?
- Important Provisions in the 88th Amendment of the Constitution