🧾 Article 286 of the Indian Constitution
Title: Restrictions as to imposition of tax on the sale or purchase of goods
🔍 Explanation:
Article 286 imposes constitutional restrictions on the powers of States to levy taxes on the sale or purchase of goods, especially to prevent interference in inter-State and international trade.
📘 Key Provisions of Article 286:
| Clause | Provision |
|---|---|
| (1) | A State cannot impose tax on: |
| a) Sales or purchases outside the State, | |
| b) Sales or purchases in the course of import or export. | |
| (Protects inter-State and foreign trade) | |
| (2) | Parliament has exclusive power to determine: |
-
When a sale or purchase is considered as occurring outside the State, or
-
In the course of import/export or inter-State trade. |
| (3) | Any State law related to sales tax on declared goods (essential goods like iron, steel, cotton, etc.) must be in public interest and needs Parliament's approval if it imposes restrictions. |
📊 Summary Chart: Article 286
| Feature | Details |
|---|---|
| Article | 286 |
| Purpose | Restrict States from taxing inter-State, import/export sales |
| Clause (1) | No tax on sales: • Outside State• In import/export |
| Clause (2) | Parliament decides what counts as inter-State/foreign sales |
| Clause (3) | Tax on declared goods (essential goods) needs Parliament’s approval |
| Objective | Ensure free flow of trade and commerce across India and globally |
| Supported by | Articles 301 to 307 (Freedom of trade and commerce) |
🧠 Why Article 286 is Important:
-
Prevents double taxation on goods moving between States.
-
Protects export/import businesses from unnecessary tax burdens.
-
Maintains uniformity and fairness in trade-related taxation.
-
Helps preserve the integrity of the Indian common market.
Here is a combined comparison chart of Articles 285 and 286 of the Indian Constitution — both deal with restrictions on taxation powers, but in different contexts:
-
Article 285 relates to exemption of Union property,
-
Article 286 restricts State taxation on certain sales.
📊 Combined Chart: Article 285 vs Article 286
| Feature | Article 285 | Article 286 |
|---|---|---|
| Title | Exemption of Union Property from State Taxation | Restrictions on State taxation of sales and purchases |
| Purpose | Prevent States from taxing property of the Union Government | Prevent States from taxing inter-State and international trade |
| Who is restricted? | State Governments | State Governments |
| What is restricted? | Tax on Union-owned property | Tax on: • Sales outside State • Import/export sales |
| Exception | Parliament can authorize such taxation | Parliament can define and regulate such sales |
| Special Condition | Old taxes (pre-1950) valid until repealed by Parliament | Tax on declared goods needs Parliament’s approval |
| Examples | Central Govt. offices, land, railways exempt from state tax | A sale of goods from Delhi to Mumbai cannot be taxed by both States |
| Objective | Maintain sovereign immunity of Union | Ensure free trade and economic unity across the country |
🧠 Key Difference:
| Aspect | Article 285 | Article 286 |
|---|---|---|
| Focus | Government property taxation | Sales/purchase taxation restrictions |
| Concerned with | Ownership-based taxation | Location and nature of trade |
Follow Us