6th Amendment of the Indian Constitution

6th amendment of the Indian constitution

In 1956, on 3rd May, the 6th amendment of the Indian Constitution was introduced in the Lok Sabha. Its primary aim was to amend or change Articles 286, and 269 to remove anomalies in taxes for inter-State sales.

The Act also sought to give effect to recommendations made by the Constitution Commission. These recommendations included removing the tax on the sale of commodities.

For those preparing for competitive exams like the UPSC, this piece on the 6th amendment of the Indian Constitution is worthwhile reading.

6th Amendment of the Indian Constitution

The name of India’s sixth constitutional amendment is The Constitution (Sixth Amendment) Act of 1956.

This added new Entry 92-A, converting the topic of taxation of interstate sales to a Union topic. Both Entry 54 and Entry 92 List I were modified by this alteration.

As a result of this, the exclusive legislative and executive power of the Union was extended to include taxes on inter-state sales and purchases of items other than newspapers. These taxes were also imposed.

These taxes would be assessed and gathered in line with a law established by the Parliament, but they would not be put in the Consolidated Fund of India.

Instead, it would be given to the States under whatever distributional rules that the Parliament might create.

The Indian Constitution’s Sixth Amendment also grants Parliament the power to set the criteria for determining when a sale or purchase of goods happens in the context of interstate trade or commerce.

Constitutional Changes

The sixth amendment of the Indian constitution passed by the parliament of India made several changes to the Constitution.

The changes were made to Articles 269, and 286, and also to the 7th schedule of the Constitution of India.

7th schedule governs the Distribution of power between the centre and states. This amendment changed how states taxed inter-state sales.

It gave the Union sole legislative and executive authority over taxes on interstate buying and selling goods other than newspapers.

The 6th Amendment of the Indian Constitution gives Parliament the authority:

  1. To establish the standards for recognizing when a sale/purchase occurs throughout interstate trade or commerce.
  2. To establish guidelines for identifying whether a sale or purchase of commodities occurs outside of a State, during the importation or exportation of products into or out of Indian territory.
  3. To proclaim by law the goods that are particularly significant to interstate trade or commerce as well as to outline the limitations and requirements that any State law (made before to or following the Parliamentary law) would be susceptible to regarding the system of collection, rates, and other aspects of the tax on the sale or purchase of those products.

Facts

When and where it was introduced?On 3rd May 1956, it was introduced in Lok Sabha.
Who introduced it?The then Minister of revenue and civil expenditure, Mr M.C. shah introduced it.
When it was commenced?11 September 1956
No. of amendments made in this Act3
Why Was It Introduced?It was introduced to seek to amend articles 269, and 286 as well as the 7th Schedule of the Constitution to drop certain anomalies in taxes on interstate sales and purchases.
The object of the billThe Bill was intended to install the Commission’s recommendations concerning amending the constitutional provisions about sales tax.
Which President assented to the bill?On 1956 11th of September, Dr Rajendra prasad assented to the bill.

Key Highlights

Provisions have been amendedArticle 286, Article 269, and 7th schedule of the Constitution of India
Amendment in 7th ScheduleInsertion of entry 92A catering taxes on inter-state commerce and trade excluding newspaper. According to the guidelines of entry 92A of List 1, entry 54 of the state list details, the taxes levied on the acquisition or sale of commodities other than newspapers.
Amendment in Article 269The interstate selling of commodities other than newspapers is covered by new Article 269(1)(g). Clause (3) specifies that Parliament must determine what forms an interstate sale.
Amendment in Article 286Introduction of Clause 286(2), stating parliament can enact a law to determine when the sale takes place under clause(1). Clause 286(3) was added, stating that any state law imposing a tax on goods deemed essential by the legislature is bound by the restrictions of the legislation enacted by the Parliament in this regard.
Consolidated fund of IndiaSuch taxes would be imposed and collected in line with a law passed by Parliament, but they would not be a part of India’s Consolidated Fund. Instead, they would go to the States themselves in line with any distributional guidelines that may be established by that law.
Essential goodsFinally, clause (3) allows Parliament to declare the things that are necessary for societal existence. By clause (3) of the article, the Parliament enacted an Act in 1952 designating many items as vital to the survival of the society, including a variety of foodstuffs, iron, clothing, cattle feeds, steel, raw cotton, etc.

Ratification

According to Article 368 of the Constitution, the Bill was approved by a special majority of parliament.

It was also adopted by the legislatures of more than half of the States named in Parts A and B of the First Schedule, as required by that article, by resolutions enacted by those legislatures before the Bill containing the amendment was submitted to the President for assent.

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Conclusion

The Constitution (Sixth Amendment) Act, 1956, is the formal name of the sixth amendment to the Indian Constitution.

It introduced tariffs on interstate sales and purchases of products other than newspapers.

These taxes wouldn’t be included in the Consolidated Fund of India. Even though these taxes would be assessed and collected in compliance with a parliamentary act.

Frequently Asked Questions

What is the 6th Amendment of the Indian Constitution?

The 6th Amendment of the Indian Constitution refers to a change that was made to the constitution in 1956, which added a new entry, 92-A, to make the taxation of interstate sales a matter for the Union.

What did the 6th Amendment of the Indian Constitution do?

This extended the exclusive legislative and executive power of the Union to include taxes on inter-state sales and purchases of items other than newspapers, which were also imposed.

What is Entry 92-A in the Indian Constitution?

Entry 92-A in the Indian Constitution was added by the 6th Amendment and made taxation of interstate sales a matter for the Union.

What is the difference between Entry 54 and Entry 92-A in the Indian Constitution?

Entry 54 in the Indian Constitution relates to the power of the Union to impose taxes on the sale and purchase of goods within a state, while Entry 92-A, added by the 6th Amendment, relates to the taxation of interstate sales and purchases of items other than newspapers.

When was the 6th Amendment of the Indian Constitution passed?

The 6th Amendment of the Indian Constitution was passed in 1956.

Who introduced the 6th Amendment of the Indian Constitution?

The 6th Amendment of the Indian Constitution was introduced by the government of India.

What is the significance of the 6th Amendment of the Indian Constitution?

The 6th Amendment of the Indian Constitution was significant because it extended the Union’s exclusive legislative and executive power to include taxes on inter-state sales and purchases of items other than newspapers.

What is List I in the Indian Constitution?

List I in the Indian Constitution is the Union List, which outlines the subjects on which the Union has exclusive power to make laws.

What is the Consolidated Fund of India?

The Consolidated Fund of India is the fund that includes all revenues received by the government of India and all loans raised by it.

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