Which statements about Article 270 are accurate?

1. It regulates tax distribution between the Union and States, covering GST proceeds.

2. Post-101st Amendment, it incorporates Union taxes and GST revenue sharing.

3. GST Compensation Cess distribution falls under Article 270.

The correct option is 1 and 2 only.

Detailed Explanation:

Let us analyze each statement regarding Article 270 of the Indian Constitution:

Statement 1: Accurate
Article 270 of the Constitution deals with the distribution of taxes levied and collected by the Union between the Union and the States. Following the introduction of the Goods and Services Tax (GST), it covers the sharing of net proceeds of taxes, including integrated GST (IGST) levied by the Centre.

Statement 2: Accurate
The 101st Constitutional Amendment Act, 2016 introduced the GST regime in India. This amendment updated Article 270 to incorporate taxes levied by the Union as well as the Goods and Services Tax (GST) revenue sharing mechanisms between the Central and State Governments.

Statement 3: Inaccurate
The GST Compensation Cess is levied under the Goods and Services Tax (Compensation to States) Act, 2017 to compensate states for loss of revenue arising on account of implementation of GST. Cesses and surcharges levied by the Union for specific purposes are credited to the Public Account of India/GST Compensation Fund and are not part of the divisible pool shared under Article 270.

Therefore, statements 1 and 2 are correct, while statement 3 is incorrect.