📜 Article 271 of the Indian Constitution
Title: Surcharge on certain duties and taxes for purposes of the Union
🔹 Full Text (Simplified Explanation):
Article 271 empowers Parliament to impose a surcharge on certain Union taxes and duties, and the entire revenue from this surcharge goes only to the Union, not shared with the States.
✅ Key Provisions of Article 271:
| Feature | Description |
|---|---|
| 🏛️ Who can levy the surcharge? | Parliament of India |
| 💰 What is a surcharge? | An additional tax on top of an existing tax or duty |
| 🎯 Purpose | For Union Government's exclusive use |
| 🔄 Revenue Sharing | Revenue from surcharge is not shared with States (even if original tax is shared) |
| 🚫 GST Exception | Surcharge cannot be imposed on GST (as per the 101st Constitutional Amendment) |
🧠 Simple Example:
If the Union levies Income Tax (which is normally shared with States under Article 270), and then adds a 10% surcharge,
→ The surcharge amount is kept entirely by the Centre,
→ Only the base income tax (without surcharge) is shared with the States.
📌 Key Points for Exams:
| Question | Answer |
|---|---|
| Who imposes surcharge under Article 271? | Parliament |
| Is it shared with States? | No |
| Can surcharge be imposed on GST? | ❌ No |
| Is it part of Article 270 sharing? | No, it is excluded |
Here is a clear and exam-oriented chart of Articles 270 to 271 of the Indian Constitution, focusing on distribution of tax revenues and surcharges between the Union and the States:
📊 Chart: Articles 270 & 271 – Tax Distribution and Surcharge
| Article | Title | Key Summary |
|---|---|---|
| 270 | Taxes levied and collected by the Union and distributed between Union and States | - Applies to most Union taxes (e.g., Income Tax, CGST). - Revenue is shared between Union and States based on Finance Commission recommendations. - Does not include taxes in Articles 268, 269, or 269A. |
| 271 | Surcharge on certain duties and taxes for purposes of the Union | - Parliament can impose a surcharge on taxes covered under Article 269 & 270. - Entire revenue goes to Union only; States do not get any share. - Surcharge cannot be imposed on GST (as per 101st Amendment). |
🧠 Quick Comparison: Article 270 vs Article 271
| Feature | Article 270 | Article 271 |
|---|---|---|
| Applies to | Most Union taxes (e.g., income tax) | Surcharge on those taxes |
| Levied by | Union Government | Union Government (Parliament) |
| Collected by | Union Government | Union Government |
| Shared with States? | ✅ Yes | ❌ No |
| Finance Commission Role? | ✅ Yes, recommends distribution | ❌ No role |
| GST Included? | ✅ Yes (CGST part of it) | ❌ No (GST excluded from surcharge) |
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