ARTICLE 269A of Constitution of India

[ Article 269A  Inserted by the Constitution (One Hundred and First Amendment) Act, 2016, w.e.f. 16-9-2016. ]

Article – 269A, Constitution of India 1950

Levy and collection of goods and services tax in course of inter-State trade or commerce.

269A. (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.

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. ]

Comments on Article – 269A of Constitution of India 1950

The Central Government shall levy and collect goods and services tax (GST) on supplies in the inter-State trade and commerce. The collected GST shall be distributed between the Union and the States in the manner as may be decided by the Parliament by law on the recommendations of the Goods and Services Tax Council. The Explanation to Article 269A gives the Central Government power to levy Integrated Goods and Services Tax (IGST) by treating supply of goods, or of services, or both in the course of import into the territory of India as supply of goods, or of services, or in both in the course of inter-State trade or commerce.

ARTICLE 269A  as per  CONSTITUTION (ONE HUNDRED AND FIRST AMENDMENT) BILL, 2016

 [ Article 269A as AMENDED BY THE CONSTITUTION (ONE HUNDRED AND FIRST AMENDMENT) BILL, 2016

AS PASSED BY RAJYA SABHA ON 3RD AUGUST, 2016]

ARTICLE 269A

1 [Levy and collection of goods and services tax in course of interState trade or commerce.

269A. (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.

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.

(1A) The amount apportioned to a State under clause (1) shall not form part of the Consolidated Fund of India.

(1B) 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.

(1C) 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.

(2) 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. Inserted by the Constitution (One Hundred and First Amendment) Bill, 2016.

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