Home The Constitution Part XI Article 246A

Art. 246A Part XI: Relations Between the Union and the States

Special Provision With Respect to Goods and Services Tax

Exact text — Constitution of India

(1) Notwithstanding anything contained in articles 246 and 254, Parliament, and, subject to clause (2), the Legislature of every State, have power to make laws with respect to goods and services tax imposed by the Union or by such State. (2) Parliament has exclusive power to make laws with respect to goods and services tax where the supply of goods, or of services, or both takes place in the course of inter-State trade or commerce. [Added by the 101st Amendment, 2016]

In Plain English

What this Article actually means

Added in 2016 to enable India's landmark GST reform, this Article deliberately breaks from the normal exclusive-List model in Article 246 — it lets BOTH Parliament and every State Legislature levy GST on the same domestic transaction simultaneously (as CGST and SGST), while giving Parliament exclusive power over inter-state GST (IGST). This required a genuinely novel constitutional design, built around the GST Council as the coordinating body.

Why This Matters To You

How it shows up in everyday life

This Article is why your GST receipt typically shows both a Central GST (CGST) and State GST (SGST) component for an in-state purchase — a direct, everyday reflection of this Article's unique dual-taxation-power design.

Landmark Cases

How courts have interpreted this Article

Union of India v. Mohit Minerals Pvt. Ltd.(2022) 10 SCC 700 — Held GST Council recommendations are only persuasive, not binding, on Parliament and State Legislatures under this Article — India's GST federalism is 'cooperative', not 'coercive', meaning states retain real, not just formal, legislative discretion. Verify this case

Read alongside this one

Art. 279a — Goods and Services Tax Council

Frequently Asked

Quick answers about Article 246A

Can a state refuse to implement a GST Council recommendation?

Following the Mohit Minerals ruling, yes in principle — GST Council recommendations aren't strictly binding on either Parliament or State Legislatures, though in practice states generally align with Council decisions for a functioning unified tax system.

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The text above reproduces Article 246A 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.