Home The Constitution Part XII Article 269

Art. 269 Part XII: Finance, Property, Contracts and Suits

Taxes Levied and Collected by the Union but Assigned to the States

Exact text — Constitution of India

(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).

In Plain English

What this Article actually means

This Article covers a different revenue-sharing model than Article 268 — here, the Union both levies AND collects certain taxes (historically, inter-state sale/purchase taxes), but the proceeds are then assigned to states according to a formula, rather than the states doing the actual collection themselves.

Why This Matters To You

How it shows up in everyday life

This Article illustrates yet another distinct variation in India's fiscal federalism toolkit — Union collects and then distributes, as opposed to Article 268's Union-sets-rate-but-state-collects model, showing how carefully calibrated (and varied) the original revenue-sharing design was for different tax types.

Read alongside this one

Art. 269a — Levy and Collection of GST on Inter-State Trade

Frequently Asked

Quick answers about Article 269

Does this Article still have much practical relevance after GST?

Its practical scope has narrowed significantly since GST (under Article 246A/269A) took over most goods and services taxation — much of what this Article originally addressed has been superseded by the newer, more comprehensive GST framework.

← PreviousArticle 268A: (Repealed) Service Tax Levied by Union and Collected and Appropriated by the Union and the States Next →Article 269A: Levy and Collection of Goods and Services Tax in Course of Inter-State Trade or Commerce

The text above reproduces Article 269 of the Constitution of India as amended to date, for general educational reference. It is public-domain legislative text, but we recommend cross-checking the authoritative version at legislative.gov.in or india.gov.in before relying on it for a legal matter. The explanation, examples and FAQs are general information, not legal advice — consult a qualified advocate for guidance on your specific situation.