Home The Constitution Part XIII Article 304

Art. 304 Part XIII: Trade, Commerce and Intercourse within India

Restrictions on Trade, Commerce and Intercourse Among States

Exact text — Constitution of India

Notwithstanding anything in article 301 or article 303, the Legislature of a State may by law—(a) impose on goods imported from other States or the Union territories any tax to which similar goods manufactured or produced in that State are subject, so, however, as not to discriminate between goods so imported and goods so manufactured or produced; and (b) impose such reasonable restrictions on the freedom of trade, commerce or intercourse with or within that State as may be required in the public interest: Provided that no Bill or amendment for the purposes of clause (b) shall be introduced or moved in the Legislature of a State without the previous sanction of the President.

In Plain English

What this Article actually means

This Article gives State Legislatures their own (narrower) power to regulate trade — they can tax goods coming from other states, but ONLY at the same rate as similar goods made within their own state (no discriminatory local protectionism), and they can impose other reasonable public-interest restrictions on trade within the state, but only with the President's prior sanction for that specific type of Bill.

Why This Matters To You

How it shows up in everyday life

This is why a state can legally apply its standard local tax rate to goods imported from another state (as long as it's genuinely the same rate charged on locally-made equivalents), but can't quietly impose a higher rate specifically to protect local producers from outside competition.

Read alongside this one

Art. 301 — Freedom of Trade, Commerce and Intercourse Art. 303 — Restrictions on Discriminatory Trade Laws

Frequently Asked

Quick answers about Article 304

Why does a state need the President's sanction for trade restriction laws under clause (b)?

This requirement acts as a check to ensure state-level trade restrictions genuinely serve the public interest and don't undermine India's constitutional commitment to a unified internal market under Article 301.

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The text above reproduces Article 304 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.