FEATURES OF CONSTITUTION AMENDMENT ACT (CAA)

 Taxation powers distributed between Centre & States 

 Centre levies duty on manufacture (except alcohol for human consumption) 

 Centre levies services tax 

 Centre levies CST (retained by originating States) on interState sales 

 State levies VAT on intra-State sales 

 State levies Entry tax / Octroi/ Luxury tax, etc.

  CAA required for assigning concurrent powers to Centre and States to levy GST on all supplies

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