📜 Article 272 of the Indian Constitution
Title: [Duties levied by the Union but collected and appropriated by the States]
⚠️ Status: Repealed
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Article 272 has been repealed by the 80th Constitutional Amendment Act, 2000.
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It is no longer in force.
🔙 Original Provision (Before Repeal):
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Article 272 allowed Union excise duties (on goods manufactured or produced in India) to be:
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Levied and collected by the Union, and
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Shared with the States based on laws made by Parliament.
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Parliament could prescribe how the proceeds would be distributed between the Union and States.
📅 Why was Article 272 repealed?
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The 80th Amendment (2000) and later the 101st Amendment (2016) introduced a new system of tax revenue sharing under Article 270, which made Article 272 redundant.
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The shift was to streamline revenue distribution under a “divisible pool” as recommended by the 10th Finance Commission.
🧠Key Points for Exams:
| Question | Answer |
|---|---|
| Is Article 272 still in force? | ❌ No (repealed by 80th Amendment) |
| What did it deal with? | Sharing of Union excise duties with States |
| Which article replaced its function? | ✅ Article 270 (post-80th and 101st Amendments) |
Here is a comprehensive and exam-friendly 📅 Timeline of Major Tax Reforms in the Indian Constitution, covering key Constitutional Amendments, Finance Commission changes, and tax distribution reforms:
📊 Timeline: Tax Reforms in the Indian Constitution
| Year | Event / Amendment | Key Reform |
|---|---|---|
| 1950 | Original Constitution Adopted | Introduced Articles 264 to 291 in Part XII dealing with Finance, Property, Contracts, and Suits. |
| 1951 | 1st Constitutional Amendment | Introduced Article 31A and 31B for agrarian reform (indirect tax impact). |
| 1953 | 1st Finance Commission set up | Recommended first tax sharing formula between Centre and States. |
| 1976 | 42nd Amendment Act | Transferred several subjects from State to Concurrent List, increasing Union control over taxation policy. |
| 2000 | 80th Amendment Act | REPLACED Article 272 and restructured Article 270 to create a “divisible pool” of central taxes shared with States. |
| 2003 | 88th Amendment Act | Inserted Article 268A for Service Tax, allowing it to be levied by Union and shared with States. |
| 2016 | 101st Constitutional Amendment | - Introduced Goods and Services Tax (GST). - Added Article 246A, 269A, and 279A. - Deleted Article 268A. - Restructured Article 270 again to include GST revenue sharing. |
| 2017 | GST came into effect (1 July 2017) | Unified indirect taxes (excise, VAT, service tax, etc.) into GST. |
| 2021 | Contingency Fund of India increased | Parliament raised the size of the Contingency Fund (related to Article 267). |
| Every 5 years | Finance Commissions (e.g., 15th FC in 2020) | Recommend distribution ratios of Union taxes between Centre and States under Article 280. |
📌 Key Constitutional Articles Involved in Tax Reforms
| Article | Purpose |
|---|---|
| 270 | Distribution of Union taxes between Union & States |
| 271 | Surcharge for Union purposes (not shared) |
| 272 | (Repealed) Union duties shared with States |
| 268A | (Inserted & repealed) Service tax sharing |
| 269A | GST on inter-State trade (IGST) |
| 246A | Concurrent powers of Centre & States to levy GST |
| 279A | Formation of GST Council |
🧠Conclusion:
India’s tax system evolved from:
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A dual structure (separate Union & State taxes),
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To a unified system (GST) with shared responsibilities,
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While ensuring fiscal federalism through regular Finance Commission recommendations.
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