What is Article 270 of Indian constitution

www.hinsoli.com July 06, 2025

Article 270 of the Indian Constitution

Title: Taxes levied and collected by the Union and distributed between the Union and the States

🔹 Full Text (Simplified Explanation):

Article 270 provides for the distribution of certain taxes between the Central Government and the State Governments.

✅ Key Provisions of Article 270:

Feature	Details
🏛️ Levy and Collection	Union (Central Government) levies and collects certain taxes.
🤝 Distribution	The net proceeds of these taxes are shared between Union and States.
🧾 Exclusions	This sharing does not apply to:

Taxes in Article 268 (Stamp Duties),
Article 269 (Inter-State trade taxes),
Article 269A (IGST on Inter-State GST). |
| 🏦 Distribution Formula | As recommended by the Finance Commission and decided by Parliament by law. |
| 🔄 Post-GST Amendment | After the 101st Constitutional Amendment (2016), GST is included under this Article only for intra-State supply (CGST + SGST). |

🧠 Simple Summary:

Question	Answer
Who levies and collects taxes under Article 270?	Union Government
Who shares the revenue?	Union + States
Who decides the share?	Finance Commission, Parliament passes the law
Is GST included?	Yes, but only intra-State GST (CGST + SGST)
Is IGST included?	❌ No, it's under Article 269A

📌 Importance of Article 270:

Provides financial support to States.
Ensures balanced fiscal federalism.
Finance Commission plays a key role in equitable distribution.

Here is a comprehensive and easy-to-remember chart of Articles 264 to 270 of the Indian Constitution from the Finance Chapter (Part XII), perfect for revision and competitive exams:

📊 Chart: Articles 264 to 270 – Financial Provisions

Article	Title	Key Summary / Purpose
264	Interpretation	Defines "Finance Commission" as one constituted under Article 280.
265	Taxes not to be imposed save by authority of law	No tax can be levied or collected without a law passed by legislature.
266	Consolidated Fund and Public Account	Establishes Consolidated Fund, Contingency Fund, and Public Account of India and States.
267	Contingency Fund	Allows creation of Contingency Funds for the Union and States for emergency expenses.
268	Duties levied by Union but collected and appropriated by the States	Stamp duties and excise on medicinal/toilet goods: levied by Union, collected by States.
268A (Repealed)	Service tax levied by Union and shared with States (repealed after GST)	Added by 88th Amendment, removed after GST (101st Amendment).
269	Taxes levied and collected by Union but assigned to States	Inter-State trade taxes (pre-GST): collected by Union, assigned to States.
269A	GST on inter-State trade or commerce	IGST levied and collected by Union, shared between Union and States.
270	Taxes levied and collected by Union and distributed between Union and States	All other Union taxes (e.g., income tax) are shared between Union & States as per Finance Commission.

🧠 Quick Reference – Who Gets the Money?

Article	Tax Type	Who Levies	Who Collects	Who Gets Revenue?
268	Stamp duties, excise (medicinal/toilet)	Union	States	States
269	Inter-State trade (pre-GST)	Union	Union	States
269A	GST on inter-State trade (IGST)	Union	Union	Union + States (shared)
270	Other Union taxes (Income Tax, CGST, etc.)	Union	Union	Union + States (shared)