Article 287 of Constitution of India – Exemption from taxes on electricity
Article 287 of Constitution of India deals with Exemption from taxes on electricity
Original Text of Article 287 of Constitution of India
Save 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 consumption or sale of electricity (whether produced by a Government or other persons) which is—
(a) consumed by the Government of India, or sold to the Government of India for consumption by that Government; or
(b) consumed in the construction, maintenance or operation of any railway by the Government of India or a railway company operating that railway, or sold to that Government or any such railway company for consumption in the construction, maintenance or operation of any railway, and any such law imposing, or authorising the imposition of, a tax on the sale of electricity shall secure that the price of electricity sold to the Government of India for consumption by that Government, or to any such railway company as aforesaid for consumption in the construction, maintenance or operation of any railway, shall be less by the amount of the tax than the price charged to other consumers of a substantial quantity of electricity.
Questions related to Article 287 of Constitution of India
Article 287 prohibits the levy of tax by a State on the sale or purchase of electricity consumed by the Government of India or used for railway traction, unless Parliament provides otherwise, as per the Constitution of India.
Article 287 was included to avoid financial burdens on the Union and to ensure uninterrupted functioning of essential services like railways, aligning with the federal principles of the Indian Constitution.
According to Article 287 and clarified in Indian Kanoon, states cannot impose such taxes unless Parliament specifically authorizes them through legislation.
Article 287 limits state powers over taxing central operations, especially in electricity consumption, ensuring that critical national services are not disrupted by varied state tax policies under the Constitution of India.
Platforms like Indian Kanoon provide legal explanations and case references on Article 287, along with simplified summaries available through UPSC notes on the Articles of Indian Constitution.
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