Which of the following statements correctly describe the provisions of Article 270 of the Indian Constitution?
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Article 270 deals with the distribution of certain taxes between the Union and the States, including the proceeds of GST.
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Following the 101st Constitutional Amendment, Article 270 was amended to include the sharing of revenue from Union taxes as well as GST.
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The GST Compensation Cess is also divided between the Union and the States under Article 270.
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 1 and 2 only.
Article 270 of the Indian Constitution provides for the sharing of certain taxes between the Union and the States.
After the 101st Constitutional Amendment, it was modified to include the distribution of revenue collected through the Goods and Services Tax (GST) in addition to other Union taxes.
However, the GST Compensation Cess is not shared under Article 270; it is levied specifically to compensate States for any revenue loss arising from the introduction of GST.
Hence, only statements 1 and 2 are correct, while statement 3 is incorrect.