Taxes levied and collected by the Union but assigned to the States

the sale or purchase of goods and taxes on the consignment of goods 2[except as provided in article 269A] 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. (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.] 3 [(3) Parliament may by law formulate principles for determining when a 4[sale or purchase of, or consignment of, goods] takes place in the course of inter-State trade or commerce.] 5 [269A. Levy and collection of goods and services tax in course of inter-State trade or commerce:- (1) Goods and services tax on supplies in the course of inter-State trade or commerce shall be levied and collected by the Government of India and such tax shall be apportioned between the Union and the States in the manner as may be provided by Parliament by law on the recommendations of the Goods and Services Tax Council. 1. Substituted by the Constitution (Eightieth Amendment) Act, 2000, s.2, for clause (1) and (2) (w.e.f. 9.6.2000). 2. Inserted by the Constitution (One Hundred and First Amendment) Act, 2016, s.8 (w.e.f. 9.6.2000). 3. Inserted by the Constitution (Sixth Amendment) Act, 1956, s.3 (w.e.f. 11.9.1956). 4. Substituted by the Constitution (Forty-sixth Amendment) Act, 1982, s.2, for “sale or purchase of good” (w.e.f.2.2.1983). 5. Inserted by the Constitution (One Hundred and First Amendment) Act, 2016, s.9 (w.e.f. 16.9.2016). 163 THE CONSTITUTION OF INDIA (Part XII. - Finance, Property, Contracts And Suits) Explanation:- For the purposes of this clause, supply of goods, or of services, or both in the course of import into the territory of India shall be deemed to be supply of goods, or of services, or both in the course of inter-State trade or commerce. (2) The amount apportioned to a State under clause (1) shall not form part of the Consolidated Fund of India. (3) Where an amount collected as tax levied under clause (1) has been used for payment of the tax levied by a State under article 246A, such amount shall not form part of the Consolidated Fund of India. (4) Where an amount collected as tax levied by a State under article 246A has been used for payment of the tax levied under clause (1), such amount shall not form part of the Consolidated Fund of the State. (5) Parliament may, by law, formulate the principles for determining the place of supply, and when a supply of goods, or of services, or both takes place in the course of inter- State trade or commerce.] 1 [270. Taxes levied and distributed between the Union and the States:- (1) All taxes and duties referred to in the Union List, except the duties and taxes referred to in articles 2[268, 269 and 269A], 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). 3 [(1A) The tax collected by the Union under clause (1) of article 246A shall also be distributed between the Union and the States in the manner provided in clause (2). 1. Substituted by the Constitution (Eightieth Amendment) Act, 2000, section 3 (w.e.f.9.6.2000).