Explain the salient features of the Constitution (One Hundred and First Amendment) Act, 2016. Do you think it is efficacious enough “to remove cascading effect of taxes and provide for common national market for goods and services”? (Answer in 250 words)

The 101st Amendment created the constitutional architecture for the Goods and Services Tax (GST), replacing multiple indirect levies with a coordinated destination-based regime.

• Article 246A gives Parliament and States concurrent GST-making power; Parliament has exclusive power over inter-State GST under Article 269A.
• GST Council under Article 279A recommends rates, exemptions, model laws and place-of-supply principles; the Union has a weighted vote, while States together hold two-thirds.
• It subsumes central excise, service tax and State VAT-related levies, with specified exclusions such as alcohol for human consumption and petroleum products initially.
• Parliament may provide compensation to States for revenue loss; the amendment also creates apportionment and dispute-resolution provisions.

GST largely removes tax-on-tax through input-tax credit, harmonises procedures and creates a national market. Digital registration, e-way bills and invoice matching improve traceability. However, multiple slabs, exclusions, compliance complexity, blocked credits, inverted duties and delayed refunds dilute neutrality. Small firms face transition costs, while States surrender some rate autonomy and compensation disputes test trust. A stable, simpler rate structure, timely refunds, robust GSTN, cooperative Council decisions and stronger compliance assistance can deepen the common market without weakening fiscal federalism.

Its success also depends on treating GST as an institution of cooperative federalism: predictable compensation, transparent Council deliberations and simple compliance are essential for durable revenue and market integration.

GST; 101st Amendment; Article 246A; GST Council; input-tax credit; destination principle; cooperative federalism.