Article 269 - Taxes levied and collected by the Union but assigned to the States - Constitution of India

Article 269 . Taxes levied and collected by the Union but assigned to the States. 6 [ (1) Taxes on the sale or purchase of goods and taxes on the consignment of goods 8 [ except as provided in article 269A ] shall be levied and collected by the Government of India but shall be assigned and shall be deemed to have been assigned to the States on or after the 1st day of April, 1996 in the manner provided in clause (2). Explanation. For the purposes of this clause, (a) the expression taxes on the sale or purchase of goods shall mean taxes on sale or purchase of goods other than newspapers, where such sale or purchase takes place in the course of inter-State trade or commerce; (b) the expression taxes on the consignment of goods shall mean taxes on the consignment of goods (whether the consignment is to the person making it or to any other person), where such consignment takes place in the course of inter-State trade or commerce. 7 [ (2) The net proceeds in any financial year of any such tax, except in so far as those proceeds represent proceeds attributable to union territories, shall not form part of the Consolidated Fund of India, but shall be assigned to the States within which that tax is leviable in that year, and shall be distributed among those States in accordance with such principles of distribution as may be formulated by Parliament by law. ]] 2 [ (3) Parliament may by law formulate principles for determining when a 5 [ sale or purchase of, or consignment of, goods ] takes place in the course of inter-State trade or commerce. ] ******************** NOTES:- 1 . Inserted vide Article 3 of the Constitution (6th Amendment) Act, 1956 dated 11-09-1956 , w.e.f. 11-09-1956. 2 . Inserted vide Article 3 of the Constitution (6th Amendment) Act, 1956 dated 11-09-1956 , w.e.f. 11-09-1956. 3 . Substituted vide Article 29 of the Constitution (7th Amendment) Act, dated 19-10-1956 w.e.f. 01-11-1956, before it was read as, States specified in Part C of the First Schedule 4 . Inserted vide Article 2 of the Constitution (46th Amendment) Act, 1986 dated 02-02-1983 . 5 . Substituted vide Article 2 of the Constitution (46th Amendment) Act, 1986 dated 02-02-1983 .before it was read as, sale or purchase of goods 6 . Substituted vide Article 2 of the Constitution (80th Amendment) Act, 2000 dated 09-06-2000 w.e.f. 09-06-2000, before it was read as, (1) The following duties and taxes shall be levied and collected by the Government of India but shall be assigned to the States in the manner provided in clause (2), namely: (a) duties in respect of succession to property other than agricultural land; (b) estate duty in respect of property other than agricultural land; (c) terminal taxes on goods or passengers carried by railway, sea or air; (d) taxes on railway fares and freights; (e) taxes other than stamp duties on transactions in stock-exchanges and futures markets; (f) taxes on the sale or purchase of newspapers and on advertisements published therein; 1 [ (g) taxes on the sale or purchase of goods other than newspapers, where such sale or purchase takes place in the course of inter-State trade or commerce; ] 4 [ (h) taxes on the consignment of goods (whether the consignment is to the person making it or to any other person), where such consignment takes place in the course of inter-State trade or commerce. ] 7 . Substituted vide Article 2 of the Constitution (80th Amendment) Act, 2000 dated 09-06-2000 w.e.f. 09-06-2000, before it was read as, (2) The net proceeds in any financial year of any such duty or tax, except in so far as those proceeds represent proceeds attributable to 3 [ Union territories ] , shall not form part of the Consolidated Fund of India, but shall be assigned to the States within which that duty or tax is leviable in that year, and shall be distributed among those States in accordance with such principles of distribution as may be formulated by Parliament by law. 8 . Inserted vide Article 8 of the Constitution (101st Amendment) Act, 2016 dated 08-09-2016 , w.e.f. 16-09-2016.