Article 286 Restrictions As To Imposition of Tax on The Sale or Purchase of Goods

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 ¹the 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 ²goods or services or both into, or export of the ²goods or services or both out of, the territory of India.

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286(2): ⁴Parliament may by law formulate principles for determining when a ⁵supply of goods or of services or both in any of the ways mentioned in clause (1).

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1. Substituted by the 101^st Constitutional Amendment Act, 2016, s. 13(i)(A), for the words “the sale or purchase of goods where such sale or purchase takes place” (w.e.f. 16-9-2016).
2. Substituted by s. 13(i)(B), ibid., for the words “goods”.
3. Explanation to cl. (1) omitted by the 6^th Constitutional Amendment Act, 1956, s. 4 (w.e.f. 11-9-1956).
4. Substituted by ibid. for cls. (2) and (3).
5. Substituted by the 101^st Constitutional Amendment Act, 2016, s. 13(ii), for the words “sale or purchase of goods takes place” (w.e.f. 16-9-2016).
6. Clause (3) omitted by the 101^st Constitutional Amendment) Act, 2016, s. 13(iii) (w.e.f. 16-9-2016).

-Text in Constitution