Part XII - Finance, Property, Contracts and Suits (Article 264 - 300A)

Part XII of the Constitution contains financial provisions including those related to taxation, definition of various Funds, the right to hold property, and borrowing by Union and State governments. The provisions of finance, property, contracts and suits have been stated from Article 264 to Article 300A of Constitution. Article 279A defines the GST Council, Article 280 defines the Finance Commission, Article 281 defines the recommendations of Finance Commission, Article 292 defines the borrow of Debt by Central Government and Article 293 defines the borrow of Debt by State Government.  Article 279A of Part XII of the Constitution defines about GST. The 101st Constitutional Amendment Act of 2016 paved the way for the introduction of a new tax regime in the country, the Goods and Services Tax. The smooth and efficient implementation of this tax requires cooperation and coordination between the Centre and the states. The GST Council is the body formed to ensure this mutual cooperation.

Finance Commission

The finance commission of India came into existence in 1951. It was established under Article 280 of the Indian constitution by the President of India. The commission shall make recommendations regarding the sharing of union taxes, principles governing grants-in-aid to states and transfer of resources to local bodies. Commission is appointed every five years and consists of a chairman and four other members. The commission submits its report to the president. He lays it before both the houses of parliament along with an explanatory memorandum as to the action taken on its recommendation. The recommendation made by the finance commission are only of advisory nature. It is upto the union government to implement its recommendations.

Finance, Property, Contracts and Suits (Article 264 - 300A)

Chapter I - Finance

Article 264: Explanation

Article 265: Taxes shall not be levied unless authorized by law

Article 266: Consolidated Funds and Public Accounts of India and the States

Article 267: Contingency Fund 

Article 268: Union-imposed duties that the States collect and appropriate 

Article 268A: Union-imposed service tax that is collected and appropriated by both the Union and the States

Article 269: Union-collected taxes that are allocated to the States

Article 269A: Levy and collection of goods and services tax in the course of interstate trade or commerce

Article 270: Taxes collected and disbursed between the Union and the States 

Article 271: Surcharge on certain tariffs and taxes for Union purposes 

Article 272: Union-levied taxes that are collected and may be split between the Union and the States

Article 273: Export duty exemptions for jute and jute products

Article 274: Bills affecting taxes in which states are interested must have the president's prior recommendation 

Article 275: Union grants to specific states

Article 276: Taxes on trades and occupations

Article 277: Savings

Article 278: Agreement on certain financial matters with States in Part B of the First Schedule

Article 279: How "net proceeds" are calculated, etc.

Article 279A: Goods and Services Tax Council

Article 280: Finance Commission 

Article 281: Finance Commission Recommendations 

Article 282: Union or State Expenditure Payable from Revenues

Article 283: Consolidated Funds, Contingency Funds, and funds credited to public accounts: Custody, etc.

Article 284: Courts and public employees' custody of suitors' deposits and other funds

Article 285: Union property is exempt from state taxes; 

Article 286: Limitations on the imposition of taxes on the sale or purchase of commodities; 

Article 287: Electricity tax exemption; 

Article 288: In some circumstances, exemption from state taxes on water or electricity

Article 289: A State's income and property are exempt from Union taxes

Article 290: Modification with regard to certain costs and benefits

Article 290A: Payment to specific Devaswom Funds each year

Article 291: Rulers' Privy Purse Sums

Chapter II - Borrowing

Article 292: The Indian Government's Borrowing

Article 293: State Borrowing

Chapter III - Property, Contracts, Rights, Liabilities, Obligations and Suits

Article 294: In some circumstances, succession to property, assets, rights, liabilities, and obligations

Article 295: In other situations, succession to property, assets, rights, liabilities, and obligations

Article 296: Property acquired as bona vacantia, escheat, or lapse

Article 297: Resources of the exclusive economic zone and valuable items in territorial seas or continental shelves will belong to the Union 

Article 298: Authority to conduct commerce, etc.

Article 299: Agreements

Article 300: Legal actions and procedures

Chapter IV - Right to Property

Article 300A: Property may not be taken away from someone unless authorized by law