Fill in the blanks: Taxes on interstate trade are restricted by Article ____ unless Parliament otherwise provides.

Correct — A. Article 286 is headed 'Restrictions as to imposition of tax on the sale or purchase of goods'.

As adopted in 1950, its clause (2) said that, except in so far as Parliament may by law otherwise provide, no State law could tax a sale or purchase made in the course of inter-State trade. That is the stem's sentence → option (a).

Why the others are wrong

• (b)
  269 — Article 269 does not restrict the States. It has the Union levy and collect taxes on inter-State sales of goods and assign the proceeds to the States.
• (c)
  276 — Article 276 covers taxes on professions, trades, callings and employments, capped at ₹2,500 per person a year. It says nothing about inter-State trade.
• (d)
  294 — Article 294 deals with succession to property, assets, rights and liabilities of the governments before 1950. It has nothing to do with taxing trade.

States may tax goods sold within their borders, but the Constitution stops them taxing trade that crosses them. Article 286 is that limit.

Its wording has changed. The Sixth Amendment (1956) rewrote clause (2), and since the 101st Amendment (2016) clause (1) bars a State from taxing a supply of goods or services made outside the State or in the course of import or export.

Key facts

• Article 286: restrictions on the imposition of tax on the sale or purchase of goods.
• Article 269: taxes levied and collected by the Union but assigned to the States.
• Article 276: tax on professions, trades, callings and employments, capped at ₹2,500 per person a year.
• Article 269A: GST on inter-State trade, levied and collected by the Union.

Common traps

• Picking Article 269 because it mentions inter-State sales: it lets the Union levy the tax, while Article 286 restricts the States.
• Confusing Article 286 with Article 301: Article 301 makes trade throughout India free, Article 286 limits State taxation.

No directly related past PYQ was found.