Article 269A of The Constitution of India
- (1)Goods and services tax on supplies in the course of inter-State trade or commerce shall be levied and collected by the Government of India and such tax shall be apportioned between the Union and the States in the manner as may be provided by Parliament by law on the recommendations of the Goods and Services Tax Council. Explanation.—For the purposes of this clause, supply of goods, or of services, or both in the course of import into the territory of India shall be deemed to be supply of goods, or of services, or both in the course of inter-State trade or commerce.
- (2)The amount apportioned to a State under clause (1) shall not form part of the Consolidated Fund of India.
- (3)Where an amount collected as tax levied under clause (1) has been used for payment of the tax levied by a State under article 246A, such amount shall not form part of the Consolidated Fund of India.
- (4)Where an amount collected as tax levied by a State under article 246A has been used for payment of the tax levied under clause (1), such amount shall not form part of the Consolidated Fund of the State.
- (5)Parliament may, by law, formulate the principles for determining the place of supply, and when a supply of goods, or of services, or both takes place in the course of inter-State trade or commerce.]
↩1.Subs. by the Constitution (Eightieth Amendment) Act, 2000. s. 2, for cls. (1) and (2) (w.e.f. 9-6-2000).
↩2.Ins. by the Constitution (One Hundred and First Amendment) Act, 2016 s. 8, (w.e.f. 16-9-2016).
↩3.Ins. by the Constitution (Sixth Amendment) Act, 1956, s. 3 (w.e.f. 11-9-1956).
↩4.Subs. by the Constitution (Forty-sixth Amendment) Act, 1982. s. 2, for "sale or purchase of goods" (w.e.f. 2-2-1983).
↩5.Ins. by the Constitution (One Hundred and First Amendment) Act, 2016, s. 9 (w.e.f. 16-9-2016).
Summary
- Section 269A of the Constitution establishes that Goods and Services Tax on inter-State trade is levied and collected by the Union but apportioned between the Union and the States.
- The apportionment of this tax is determined by Parliament based on the recommendations of the Goods and Services Tax Council.
- Importing goods or services into India is legally treated the same as inter-State trade for the purpose of levying this tax.
- The portion of the tax assigned to the States does not become part of the Consolidated Fund of India.
Practical examples
FAQ
1. How is the Goods and Services Tax divided between the central and state governments under Section 269A of the Constitution?
Under Section 269A of the Constitution, the tax is apportioned between the Union and the States in a manner provided by Parliament by law, following the recommendations of the Goods and Services Tax Council.
2. Are imports subject to inter-State taxes under Section 269A of the Indian Constitution?
Yes, Section 269A of the Indian Constitution expressly states that the supply of goods or services in the course of import into the territory of India shall be deemed to be a supply in the course of inter-State trade or commerce.
3. Does the State's share of the inter-State GST go into the central treasury under Section 269A of the Constitution of India?
No, Section 269A of the Constitution of India specifies that the amount apportioned to a State shall not form part of the Consolidated Fund of India.
Test yourself
Q1.Under Section 269A of the Constitution of India, whose recommendations must Parliament rely on to apportion the inter-State Goods and Services Tax?
Q2.According to Section 269A of the Indian Constitution, how is the supply of goods imported into the territory of India classified?
Q3.What does Section 269A of the Constitution dictate about an amount collected by a State that is used for paying a Union-levied tax?
Q4.According to the combined reading of Section 269A and Section 269 of the Constitution of India, which entity ultimately formulates the principles for determining the place of supply in inter-State trade?