Article 286

Restrictions as to imposition of tax on the sale or purchase of goods

286. (1) No law of a State shall impose, or authorise the imposition of, a tax on [the supply of goods or of services or both, where such supply takes place]****-

(a) outside the State; or

(b) in the course of the import of the goods into, or export of the [goods or services or both]***** out of, the territory of India.

*

[(2) Parliament may by law formulate principles for determining when a sale or purchase of goods takes place in any of the ways mentioned in clause (1).

[(3) Any law of a State shall, in so far as it imposes, or authorises the imposition of,

(a) a tax on the sale or purchase of goods declared by Parliament by law to be of special importance in inter-State trade or commerce; or

(b) a tax on the sale or purchase of goods, being a tax of the nature referred to in sub-clause (b), sub-clause (c) or sub-clause (d) of clause (29A) of article 366, be subject to such restrictions and conditions in regard to the system of levy, rates and other incidents of the tax as Parliament may by law specify.]***]**

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* Explanation to cl. (1) omitted by the Constitution (Sixth Amendment) Act, 1956, s. 4.

** Subs. by s. 4, ibid., for cls. (2) and (3)

*** Subs. by the Constitution (Forty-sixth Amendment) Act, 1982, s. 3, for cl. (3)

**** Subs. by the Constitution (One Hundred and first) Amendment Act, 2016, s. 13(i)

***** Subs. by the Constitution (One Hundred and first) Amendment Act, 2016, s. 13(ii)