Part XII.—Finance, Property, Contracts and
Suits.—Arts.—286–288.
[१]******
[२][(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 authorises the imposition of, a tax on the sale or purchase goods declared by Parliament by law to be of special importance in inter-State trade or commerce, 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.]
Exemption from taxes on electricity.
287. Save in so far as Parliament may by law otherwise provide, no law of a State shall impose, or authorise the imposition of, a tax on the consumption or sale of electricity (whether produced by a Government or other persons) which is-
- (a) consumed by the Government of India, or sold to the Government of India for consumption by that government; or
- (b) consumed in the construction, maintenance or operation of any railway by the Government of India or a railway, company operating that railway, or sold to that government or any such railway company for consumption the construction, maintenance or operation of all railway,
and any such law imposing, or authorising the imposition of, a trade on the sale of electricity shall secure that the price of electricity sold to the Government of India for consumption by that government, or to any such railway company as aforesaid for consumption in the construction, maintenance or operation of any railway shall be less by the amount of the tax than the price charged to other consumers of a substantial quantity of electricity.
Exemption from taxation by States in respect of water or electricity in certain cases.
288. (1) Save in so far as the President may by order otherwise provide, no law of a State in force immediately before the commencement of this Constitution shall impose, or authorise the imposition of, a tax in respect of any water or electricity stores generated, consumed, distributed or sold by any authority established by any existing law or any law made by Parliament for regulating or developing any inter-State river or river-valley.
Explanation.-The expression "law of State in force" this clause shall include a law of a State passed or made before the commencement of this Constitution and not previously repealed notwithstanding that it or parts of it may not be then in operation either at all or in particular areas.
