India’s constitutional provisions that favour creation of GST

India’s constitutional provisions that favour creation of GST :

• Article 301 establishes the fundamental principle that India must be a common market: Freedom of trade, commerce and intercourse. Subject to the other provisions of this Part, trade, commerce and intercourse throughout the territory of India shall be free.
• Articles 302-304 both qualify and elaborate on that principle.
• Article 302 gives Parliament the power to restrict free trade between and within states on grounds of public interest. Parliament may by law impose such restrictions on the freedom of trade, commerce or intercourse between one State and another or within any part of the territory of India as may be required in the public interest
• Article 303 (a) imposes a most-favoured-nation type obligation on both Parliament and state legislatures so no law or regulation can favour one state over another.
• Article 304 (a) imposes a national treatment-type obligation on state legislatures (not on Parliament); so, no taxes can be applied to the goods originating in another state that are also not applied on goods produced within a state. This Article refers only to taxes and not to regulations.
• Further, Article 304 (b) allows state legislatures to restrict trade and commerce on grounds of public interest.
   

By: Vishal