🧾 Article 288 of the Indian Constitution
Title: Exemption from taxation by States in respect of water or electricity in certain cases
🔍 Explanation:
Article 288 provides tax exemptions to the Union Government and certain entities in the context of water or electricity supplied/stored/used for:
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Railways, or
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Union-controlled purposes.
It restricts State Governments from imposing taxes on such utilities unless Parliament allows.
📘 Key Provisions of Article 288:
| Clause | Provision |
|---|---|
| (1) | No State shall tax water or electricity: |
-
Stored, supplied, or distributed by the Union or its authorities,
-
For use in connection with the railways or other Union-controlled purposes,
unless authorized by Parliament. |
| (2) | If such a tax law existed before the Constitution came into effect (before 26 Jan 1950), it may continue until Parliament repeals/modifies it. |
📊 Summary Chart: Article 288
| Feature | Details |
|---|---|
| Article | 288 |
| Subject | Exemption from State taxes on water and electricity used by Union |
| Taxing Authority Restricted | State Governments |
| Applies to | - Water or electricity used for railways or other Union purposes |
| Restriction Condition | State cannot impose such tax without approval of Parliament |
| Exception | Pre-1950 laws imposing such taxes remain valid until Parliament repeals |
| Purpose | To protect national infrastructure like railways from added tax burdens |
🧠 Why Article 288 is Important:
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Ensures uninterrupted and affordable utility supply to essential national services like railways.
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Protects the financial and operational autonomy of the Union Government in infrastructure sectors.
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Prevents duplication or conflict of tax powers between Centre and States.
Here is a comprehensive comparison chart of Articles 285 to 288 of the Indian Constitution — these articles form a unified framework of tax exemptions and restrictions aimed at preserving the fiscal sovereignty of the Union and ensuring smooth inter-governmental functioning, especially in critical sectors like trade, property, electricity, and infrastructure.
📊 Combined Comparison: Articles 285 to 288 – Tax Exemptions & Restrictions
| Article | Title | Main Focus | Who is Restricted? | Exemption Applies To | Parliament's Role |
|---|---|---|---|---|---|
| 285 | Exemption of Union property from State taxation | Prevents States from taxing property owned by the Union | State Governments | Union Government land, buildings, offices, railways, etc. | Can authorize such taxation |
| 286 | Restrictions on State taxation of sales/purchases | States cannot tax inter-State, export, or import trade | State Governments | Sales of goods: outside the State, in the course of import/export | Can define such sales and regulate taxation |
| 287 | Exemption from State taxes on electricity sold to/consumed by Union | Prohibits States from taxing electricity used or sold to the Union Government | State Governments | Electricity used in central govt. operations or institutions | Can repeal pre-existing tax laws |
| 288 | Exemption from State taxes on water/electricity for Union services | Prevents States from taxing water/electricity used for railways or Union-controlled purposes | State Governments | Electricity/water for railways, defence, central projects | Must authorize new taxes beyond 1950 laws |
🧠 Key Concepts Across Articles 285–288
| Theme | Explanation |
|---|---|
| Union Sovereignty | Ensures Union property and functions remain free from State tax interference |
| Free Trade & Commerce | Maintains inter-State and international trade without multiple taxation |
| Public Utility Protection | Electricity and water for national functions are safeguarded from taxation |
| Parliament’s Supremacy | Only Parliament can allow or regulate exceptions to these exemptions |
| Legacy Clauses | Pre-1950 taxes allowed until repealed or modified by Parliament |
✅ Visual Summary
┌────────────┐ ┌────────────┐ ┌────────────┐ ┌────────────┐
│ Article 285│→ │ Article 286│→ │ Article 287│→ │ Article 288│
│ (No state │ │ (No state │ │ (No tax on │ │ (No tax on │
│ tax on │ │ tax on │ │ electricity│ │ utilities │
│ Union prop)│ │ exports/ │ │ for Union) │ │ for railways)│
└────────────┘ │ imports/ │ └────────────┘ └────────────┘
│ inter-state│
│ sales │
└────────────┘
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