Article 286 – Restrictions on the States to impose tax :
- Prior to amendment, the clause restricted the states to impose taxes on sale or purchase of goods.
- Now it has been amended to provide that the state shall not impose any tax on the supply of the goods or services or both, where such supply takes place:
- Outside the State
- in the course of the import of the goods into, or export of the goods out of, the territory of India
- Further, the Parliament will formulate the principals for determining when a supply constitutes a supply as mentioned in the point above.
- Marginal Note to the Section has not been amended. It still reads “Restrictions as to imposition of tax on the sale or purchase of goods”