ARTICLE 286

 [AS AMENDED BY THE CONSTITUTION (ONE HUNDRED AND FIRST AMENDMENT) BILL, 2016

AS PASSED BY RAJYA SABHA ON 3RD AUGUST, 2016]

ARTICLE 286

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 1 [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.

Explanation.—[***]

(2) Parliament may by law formulate principles for determining when a 3 [supply of goods or of services or both] in any of the ways mentioned in clause (1)

(3) 4 [***]

1. . Substituted for “the sale or purchase of goods where such sale or purchase takes place” by the Constitution (One Hundred and First Amendment) Bill, 2016.

2.  Substituted for “goods” by the Constitution (One Hundred and First Amendment) Bill, 2016.

3.Substituted for “the sale or purchase of goods takes place” by the Constitution (One Hundred and First Amendment) Bill, 2016.

4. 2. Omitted, by the Constitution (One Hundred and First Amendment) Bill, 2016.. Prior to its omission, clause (3) read as under :

“(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.”

Download RELEVANT PROVISIONS OF CONSTITUTION OF INDIA [AS AMENDED BY THE CONSTITUTION (ONE HUNDRED AND FIRST AMENDMENT) BILL, 2016