Article 286 of Constitution of India – Restrictions as to imposition of tax on the sale or purchase of good
Article 286 of Constitution of India deals with Restrictions as to imposition of tax on the sale or purchase of good
Original Text of Article 286 of Constitution of India
(1) No law of a State shall impose, or authorise the imposition of, a tax on [the supply of goods or of services or both, where such supply takes place]—
(a) outside the State; or
(b) in the course of the import of the 2[goods or services or both] into, or export of the 2[goods or services or both] out of, the territory of India.
[(2) Parliament may by law formulate principles for determining when a supply of goods or of services or both] in any of the ways mentioned in clause (1).
Questions related to Article 286 of Constitution of India
Article 286 restricts states from imposing taxes on the sale or purchase of goods that occur outside the state or during import/export, ensuring uniformity in interstate and international trade under the Constitution of India.
As per the Articles of Indian Constitution, Article 286 prevents trade barriers by prohibiting states from taxing sales or purchases that cross state or national boundaries, thus promoting economic unity.
Parliament is empowered to define principles that determine when a sale or purchase takes place outside a state or during import/export, ensuring national coherence, as explained in Indian Kanoon.
Article 286 laid the foundation for centralized tax laws like GST by limiting state taxation powers, a principle crucial to India’s fiscal federalism under the Indian Constitution.
You can refer to Indian Kanoon for legal interpretation and case laws, or UPSC-oriented notes on the Constitution of India to understand Article 286 in a simplified manner.
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