Article 269 of Constitution of India – Taxes levied and collected by the Union but assigned to the States.
Article 269 of Constitution of India deals with Taxes levied and collected by the Union but assigned to the States.
Original Text of Article 269 of Constitution of India
(1) Taxes on the sale or purchase of goods and taxes on the consignment of goods [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.
(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.]
(3) Parliament may by law formulate principles for determining when a [sale or purchase of, or consignment of goods] takes place in the course of inter-State trade or commerce.]
Questions related to Article 269 of Constitution of India
According to Indian Kanoon, Article 269 of the Indian Constitution deals with taxes on the sale or purchase of goods and taxes on inter-state trade or commerce, which are levied and collected by the Central Government but assigned to the States.
Article 269 plays a crucial role in the Articles of Indian Constitution because it ensures revenue sharing between the Centre and States from taxes on inter-state trade, maintaining financial balance within the federal structure of the Constitution of India.
As per Article 269 of the Indian Constitution, taxes on the sale or purchase of goods and taxes on inter-state trade or commerce, except for newspapers, are covered. These taxes are collected by the Centre but distributed among States.
Article 269 of the Constitution of India promotes cooperative federalism by allowing the Central Government to collect taxes on inter-state trade and then distributing them among States based on principles laid down by Parliament, as mentioned in Indian Kanoon.
You can read the detailed provisions and legal explanation of Article 269 of the Indian Constitution on Indian Kanoon. UPSC aspirants can also refer to simplified notes on 99notes.in for better understanding of the Articles of Indian Constitution.
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