Q. Consider the following statements regarding the distribution of legislative powers to levy taxes:
1.The Parliament has exclusive power to levy taxes on subjects enumerated in the Union List, while the State Legislatures have exclusive power for the State List.
2.The residuary power of taxation (taxation on matters not mentioned in any of the three lists) is vested exclusively in the Parliament.
3.There are no tax entries in the Concurrent List, as the Constitution seeks to avoid double taxation and jurisdictional conflicts between the Centre and States.
Which of the statements given above is/are correct?
Answer: A
Notes:
Explanation:
Statement 1: Correct. This is the general scheme under Article 246.
Statement 2: Correct. Under Article 248, the power to legislate on residuary matters, including taxation (e.g., Gift Tax, Wealth Tax in the past), lies with the Parliament.
Statement 3: Incorrect. While the original Constitution generally avoided tax entries in the Concurrent List, the 101st Amendment Act, 2016 introduced Article 246A, which provides concurrent power to both Parliament and State Legislatures to make laws with respect to Goods and Services Tax (GST).
