Article 286 - Restrictions as to imposition of tax on the sale or purchase of goods - Constitution of India

Restrictions as to imposition of tax on the sale or purchase of goods. 286 . (1) No law of a State shall impose, or authorise the imposition of, a tax on 3 [ 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 4 [ goods or services or both ] into, or export of the 5 [ goods or services or both ] out of, the territory of India. 1 [****] 2 [ (2) Parliament may by law formulate principles for determining when a 6 [ supply of goods or of services or both] in any of the ways mentioned in clause (1). 7 [****]] ******************* NOTES:- 1 . Omitted vide Article 4 of the Constitution (6th Amendment) Act, 1956 dated 11-09-1956 w.e.f. 11-09-1956, before it was read as, Explanation. For the purposes of sub-clause (a), a sale or purchase shall be deemed to have taken place in the State in which the goods have actually been delivered as a direct result of such sale or purchase for the purpose of consumption in that State, notwithstanding the fact that under the general law relating to sale of goods the property in the goods has by reason of such sale or purchase passed in another State. 2 . Substituted vide Article 4 of the Constitution (6th Amendment) Act, 1956 dated 11-09-1956 w.e.f. 11-09-1956, before it was read as, (2) Except in so far as Parliament may by law otherwise provide, no law of a State shall impose, or authorise the imposition of, a tax on the sale or purchase of any goods where such sale or purchase takes place in the course of inter-State trade or commerce: Provided that the President may by order direct that any tax on the sale or purchase of goods which was being lawfully levied by the Government of any State immediately before the commencement of this Constitution shall, notwithstanding that the imposition of such tax is contrary to the provisions of this clause, continue to be levied until the thirty-first day of March, 1951, (3) No law made by the Legislature of a State imposing, or authorising the imposition of, a tax on the sale or purchase of any such goods as have been declared by Parliament by law to be essential for the life of the community shall have effect unless it has been reserved for the consideration of the President and has received his assent. 3 . Substituted vide Article 13 of the Constitution (101st Amendment) Act, 2016 dated 08-09-2016 w.e.f. 16-09-2016, before it was read as, the sale or purchase of goods where such sale or purchase takes place 4 . Substituted vide Article 13 of the Constitution (101st Amendment) Act, 2016 dated 08-09-2016 w.e.f. 16-09-2016, before it was read as, goods 5 . Substituted vide Article 13 of the Constitution (101st Amendment) Act, 2016 dated 08-09-2016 w.e.f. 16-09-2016, before it was read as, goods 6 . Substituted vide Article 13 of the Constitution (101st Amendment) Act, 2016 dated 08-09-2016 w.e.f. 16-09-2016, before it was read as, sale or purchase of goods takes place 7 . Omitted vide Article 13 of the Constitution (101st Amendment) Act, 2016 dated 08-09-2016 w.e.f. 16-09-2016, before it was read as, (3) Any law of a State shall, insofar as it imposes, or authorises the imposition of,- (a) a tax on the sale or purchase of goods declared by Parliament by law to be of special importance in inter-State trade or commerce; or (b) a tax on the sale or purchase of goods, being a tax of the nature referred to in sub-clause (b), sub-clause (c) or sub-clause (d) of clause (29A) of article 366, be subject to such restrictions and conditions in regard to the system of levy, rates and other incidents of the tax as Parliament may by law specify.