Which Amendment Act paved the way for the introduction of goods and services tax in the country?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 101st Amendment Act.
The 101st Constitutional Amendment Act, 2016 paved the way for the introduction of the Goods and Services Tax (GST) in India. Enforced on 1st July 2017, it replaced multiple indirect taxes such as excise duty, service tax, and VAT with a unified tax structure. This amendment empowered both the Centre and the States to levy GST, ensuring a common national market. It also established the GST Council to recommend tax rates, exemptions, and rules, promoting cooperative federalism in taxation.