Fill in the blanks:
Taxes on interstate trade are restricted by Article ________unless Parliament otherwise provides.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 286.
Article 286 of the Indian Constitution imposes restrictions on the states' power to levy taxes on the sale or purchase of goods. It specifically prohibits states from imposing taxes on goods that take place outside the state or in the course of interstate trade or commerce, as well as during import or export. This ensures the free flow of trade across state borders and prevents multiple taxation. Only Parliament has the authority to formulate principles for determining when a sale or purchase takes place in these specific scenarios, maintaining a unified national market.
Analysis of Other Options:
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Article 269: Deals with taxes levied and collected by the Union but assigned to the States, such as taxes on the interstate sale of goods.
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Article 276: Relates to taxes on professions, trades, callings, and employments that can be levied by State legislatures or local bodies.
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Article 294: Pertains to the succession of property, assets, rights, liabilities, and obligations from the British Crown to the Union and States.