📜 Article 269 of the Indian Constitution
Title: Taxes levied and collected by the Union but assigned to the States
🔹 Full Text (Simplified):
Article 269 provides that certain taxes are:
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Levied and collected by the Union (Central Government),
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But the entire net proceeds are assigned to the States in accordance with principles laid down by Parliament.
✅ Key Features of Article 269:
| Feature | Description |
|---|---|
| 🏛️ Who levies the tax? | Union Government |
| 💰 Who collects the tax? | Union Government |
| 🌐 Who gets the revenue? | States, as per law made by Parliament |
| 📜 Tax Type | Taxes on the sale or purchase of goods and inter-State trade or commerce (before GST) |
| ⚖️ Distribution Rule | Parliament decides the distribution formula among States |
🧾 Why was it needed?
Before GST, there were many taxes on inter-State trade. To:
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Maintain uniformity in trade laws, and
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Ensure States receive revenue from commerce involving them,
this Article assigned net proceeds to the States.
⚠️ Post-GST Note:
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With the introduction of GST (Goods and Services Tax) via 101st Amendment (2016), Article 269A was added.
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Now, IGST (Integrated GST) on inter-State trade is governed under Article 269A, and Article 269 applies to pre-GST taxes.
🧠 Exam Tip:
| Question | Answer |
|---|---|
| Who levies taxes under Article 269? | Union |
| Who collects it? | Union |
| Who receives the proceeds? | States |
| Who decides distribution? | Parliament |
Here is a summary comparing Articles 268, 269, and 269A of the Indian Constitution — especially useful for exams and revision:
📊 Summary Table: Articles 268, 269 & 269A – Tax Distribution Between Union and States
| Article | Subject | Levy by | Collection by | Revenue Goes To | Type of Tax |
|---|---|---|---|---|---|
| 268 | Duties levied by Union but collected by States | Union | States | States | Stamp duties & excise on medicinal/toilet goods |
| 269 | Taxes levied & collected by Union but assigned to States | Union | Union | States (as per Parliament law) | Inter-State sale/purchase of goods (pre-GST) |
| 269A | Levy & collection of GST on inter-State trade or commerce | Union | Union | Shared between Union and States | IGST (Integrated GST) under GST law |
🧠 Quick Points:
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✅ Article 268 = Union levies, States collect and keep
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✅ Article 269 = Union levies and collects, but gives to States
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✅ Article 269A = Union levies and collects IGST, shares with States
📌 Usefulness in Exams:
| Question | Answer |
|---|---|
| Which Article deals with IGST? | 269A |
| Which Article allows States to collect Union duties? | 268 |
| Who decides distribution under Article 269? | Parliament |
| Is GST covered under Article 269? | ❌ No (it’s under 269A) |
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