Amendment status not verified — confirm the current text below against the official source.
1[(1) Taxes on the sale or purchase of goods and taxes on the consignment of goods shall be levied and collected by the Government of India but shall be assigned and shall be deemed to have been assigned to the States on or after the 1st day of April, 1996 in the manner provided in clause (2). Explanation.—For the purposes of this clause,— (a) the expression “taxes on the sale or purchase of goods” shall mean taxes on sale or purchase of goods other than newspapers, where such sale or purchase takes place in the course of inter-State trade or commerce; (b) the expression “taxes on the consignment of goods” shall mean taxes on the consignment of goods (whether the consignment is to the person making it or to any other person), where such consignment takes place in the course of inter-State trade or commerce. Service tax levied by Union and collected and appropriated by the Union and the States. Taxes levied and collected by the Union but assigned to the States. *Ins. by the Constitution (Eighty-eighth Amendment) Act, 2003, s. 2 (which is yet not in force, date to be notified later on). 1Subs. by the Constitution (Eightieth Amendment) Act, 2000, s. 2, for cls. (1) and (2). THE CONSTITUTION OF INDIA (Part XII.—Finance, Property, Contracts and Suits.— Arts. 268-269.) 162 (2) The net proceeds in any financial year of any such tax, except in so far as those proceeds represent proceeds attributable to Union territories, shall not form part of the Consolidated Fund of India, but shall be assigned to the States within which that tax is leviable in that year, and shall be distributed among those States in accordance with such principles of distribution as may be formulated by Parliament by law.] 1[(3) Parliament may by law formulate principles for determining when a 2[sale or purchase of, or consignment of, goods] takes place in the course of inter-State trade or commerce.] 3[270. (1) All taxes and duties referred to in the Union List, except the duties and taxes referred to in articles *[268 and 269], respectively, surcharge on taxes and duties referred to in article 271 and any cess levied for specific purposes under any law made by Parliament shall be levied and collected by the Government of India and shall be distributed between the Union and the States in the manner provided in clause (2). (2) Such percentage, as may be prescribed, of the net proceeds of any such tax or duty in any financial year shall not form part of the Consolidated Fund of India, but shall be assigned to the States within which that tax or duty is leviable in that year, and shall be distributed among those States in such manner and from such time as may be prescribed in the manner provided in clause (3). (3) In this article, “prescribed” means,— (i) until a Finance Commission has been constituted, prescribed by the President by order, and (ii) after a Finance Commission has been constituted, prescribed by the President by order after considering the recommendations of the Finance Commission.] Taxes levied and distributed between the Union and the States. 1Ins. by the Constitution (Sixth Amendment) Act, 1956, s. 3. 2Subs by the Constitution (Forty-sixth Amendment) Act, 1982, s. 2, for “sale or purchase of goods”. 3Subs. by the Constitution (Eightieth Amendment) Act, 2000, s. 3, for art. 270 (w.e.f. 1-4-1996). *The words and figures in brackets shall stand substituted as “articles 268, 268A and 269” by the Constitution (Eighty-eighth Amendment) Act, 2003, s. 3 (which is yet not in force, date to be notified later on). THE CONSTITUTION OF INDIA (Part XII.—Finance, Property, Contracts and Suits.— Arts. 269-270.) 163