Service tax levied by Union and collected and appropriated by the Union and the States

Quick Summary (TL;DR)

Article 268A (Service tax levied by Union and collected and appropriated by the Union and the States): Regulates taxation authority, public funds, revenue sharing, contracts, and property rights under Part XII.

In Simple Citizen Words

Article 268A ('Service tax levied by Union and collected and appropriated by the Union and the States') in Part XII (Finance, Property, Contracts and Suits) regulates public money and property. It covers constitutional rules on valid taxation (Art 265), Consolidated and Contingency Funds (Arts 266–267), GST & tax devolution between Union and States (Arts 268–281), government borrowing and contracts (Arts 292–299), liability of the State to be sued by citizens (Art 300), and the constitutional Right to Property (Art 300A). Specifically: (1) Taxes on services shall be levied by the Government of India and such tax shall be collected and appropriated by the Government of India and the States in the manner provided in clause (2). (2) The proceeds in any financial year of...

Key Constitutional Provisions

Constitutional Mandate (Art. 268A): Directly codifies the legal rule for 'Service tax levied by Union and collected and appropriated by the Union and the States' under Part XII

Structured across 4 clause(s) and 2 sub-clause(s) with clear procedural conditions

Requires transparent Parliamentary law-making and democratic accountability rather than arbitrary executive action

Exceptions & Reasonable Restrictions

Under Article 265, no tax or fee can be levied or collected by executive order without an enacted law, and no money can be withdrawn from the Consolidated Fund without Parliamentary/Legislative appropriation.

Why This Matters in Daily Life

Protects citizens against arbitrary tax demands and illegal property seizure while enforcing strict fiscal discipline on governments.

Want deeper legal & historical context? Explore the official Bare Act or Supreme Court Precedents & CAD Debates:

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N. Gopalaswami Ayyangar & Dr. B. R. Ambedkar

Financial Provisions Draftsmen • August 4–10, 1949

🏛️ Constituent Assembly Debates (1946–1949)

Core Constitutional Debate & Dilemma

Framing context for Article 268A: Enforcing "no taxation without authority of law" (Art 265), equitable tax devolution via an independent Finance Commission (Art 280), and protecting citizens' property (Art 300A).

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"No tax shall be levied or collected except by authority of law, and States must have assured constitutional revenue streams adjudicated by an independent Finance Commission free from political bias."

Assembly Resolution & Final Synthesis

Constitutional resolution in Article 268A: Enacted Part XII (Articles 264–300A) regulating taxation, Consolidated Funds, the Finance Commission, government contracts/suits, and the constitutional Right to Property.

🏛️ Constitutional Significance: During the Constituent Assembly deliberations, Article 268A was codified as an integral pillar of India's constitutional governance.

Then vs Now: Constitutional Evolution & Visual Diff

Service tax levied by Union and collected and appropriated by the Union and the States

🔵 Newly Inserted After 1950 (Via Amendment) Baseline: Jan 26, 1950 → Today

ORIGINAL BASELINE (1950)

Not present in the original Constitution of 26 January 1950. Article 268A did not exist in the 1950 text and was newly inserted into the Constitution by Parliament through the 88th Constitutional Amendment Act, 2003.

CURRENT ENFORCEABLE STATUS (TODAY)

Active & Enforceable Today (Inserted via the 88th Constitutional Amendment Act, 2003): Article 268A (Service tax levied by Union and collected and appropriated by the Union and the States): Regulates taxation authority, public funds, revenue sharing, contracts, and property rights under Part XII.

Key Amendment Milestones & Textual Modifications

88th Constitutional Amendment Act, 2003 — Constitutional Framework for Service Tax Sharing

Year 2003

Why it happened: Inserted Article 268A enabling Service Tax revenues to be shared between the Centre and the States (later merged into GST in 2016).

                                    Inserted (268A): Constitutional Framework for Service Tax Sharing                                

Article 268 Ask Nyaya Saarthi AI About This Article Article 269

Why Do We Need the Constitution?

Service tax levied by Union and collected and appropriated by the Union and the States

Official Constitutional Text (Gazette Bare Act)

Then vs Now: Constitutional Evolution & Visual Diff

Key Amendment Milestones & Textual Modifications

Emergency Citizen Helplines

Service tax levied by Union and collected and appropriated by the Union and the States

Official Constitutional Text (Gazette Bare Act)

Then vs Now: Constitutional Evolution & Visual Diff

Key Amendment Milestones & Textual Modifications