What is Article 287 of indian constitution

 

🧾 Article 287 of the Indian Constitution

Title: Exemption from taxes on electricity consumed by the Government or sold to the Government

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🔍 Explanation:

Article 287 provides tax exemptions on electricity in certain cases — specifically when electricity is:

1. Consumed by the Government (Union or State), or

2. Sold to the Government (by any agency or utility).

This article prohibits States from taxing such electricity consumption/sale, with exceptions.

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📘 Key Provisions of Article 287:

Clause	Provision
Main Provision	A State shall not impose tax on the consumption or sale of electricity:

• Consumed by the Government of India or

• Sold to the Government of India,
  unless the law imposing such tax was in force before the commencement of the Constitution. |
  | Exception | Such pre-existing taxes can continue, unless repealed by Parliament. |

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📊 Summary Chart: Article 287

Feature	Details
Article	287
Subject	Tax exemption on electricity for or by the Government of India
Taxing Authority Restricted	State Governments
Exemption Applies to	- Electricity consumed by the Union Government - Electricity sold to the Union Government
Exception	Pre-1950 taxes continue until repealed by Parliament
Purpose	Reduce financial burden on central governance and utilities used for public purposes

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🧠 Why Article 287 is Important:

• Protects the Central Government from unnecessary State-level taxation.

• Helps in efficient electricity use for national development.

• Maintains financial discipline and clear division of tax powers.

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Here is a comparative chart of Articles 285, 286, and 287 of the Indian Constitution — all three articles deal with restrictions or exemptions related to taxation, ensuring a balance between Centre-State financial powers and free economic functioning.

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📊 Combined Comparison: Articles 285, 286 & 287

Feature	Article 285	Article 286	Article 287
Title	Exemption of Union property from State taxation	Restrictions on State tax on sales or purchases of goods	Exemption from taxes on electricity consumed/sold to the Union Govt
Subject of Tax	Property owned by the Union Government	Sales/Purchases that are inter-State or international	Electricity consumed/sold to the Government of India
Who is Restricted?	State Governments	State Governments	State Governments
Main Restriction	No State tax on Union property unless Parliament permits	No State tax on: – Inter-State trade– Import/export trade	No State tax on electricity used/sold to the Union Government
Exception	Pre-1950 taxes continue unless repealed by Parliament	Parliament has power to define and regulate inter-State trade	Pre-1950 electricity taxes allowed until repealed by Parliament
Protected Entity	Union Government property	Freedom of trade and import/export	Central Government’s electricity use
Constitutional Purpose	To maintain Union's financial autonomy	To ensure free flow of trade and commerce	To reduce energy cost for national functions

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🧠 Key Insights:

Aspect	Article 285	Article 286	Article 287
Type of Tax Affected	Property Tax	Sales Tax	Electricity Tax
Constitutional Goal	Fiscal Sovereignty	Free Trade in India	Reduce public expenditure
Can Parliament Intervene?	✅ Yes	✅ Yes	✅ Yes

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