Restrictions on trade, commerce and intercourse among States
Article 304 — Restrictions on trade, commerce and intercourse among States
- Restrictions on trade, commerce and intercourse among States.—Notwithstanding anything in article 301 or article 303, the Legislature of a State may by law—
- (a) impose on goods imported from other States 1[or the Union territories] any tax to which similar goods manufactured or produced in that State are subject, so, however, as not to discriminate between goods so imported and goods so manufactured or produced; and
- (b) impose such reasonable restrictions on the freedom of trade, commerce or intercourse with or within that State as may be required in the public interest:
Provided that no Bill or amendment for the purposes of clause (b) shall be introduced or moved in the Legislature of a State without the previous sanction of the President. 305. Saving of existing laws and laws providing for State monopolies.—Nothing in articles 301 and 303 shall affect the provisions of any existing law except in so far as the President may by order otherwise direct; and nothing in article 301 shall affect the operation of any law made before the commencement of the Constitution (Fourth Amendment) Act, 1955, in so far as it relates to, or prevent Parliament or the Legislature of a State from making any law relating to, any such matter as is referred to in sub-clause (ii) of clause (6) of article 19.]
Plain English Summary
This article allows a State government to put certain taxes on goods coming from other states or the Union, provided these taxes are similar to those on goods made within the state. It also gives the State the power to place reasonable restrictions on trade and commerce within its borders if it is in the public interest.
Key Points
- A State can impose taxes on goods imported from other states that mirror the taxes on locally manufactured goods, without discriminating between them.
- States can restrict the freedom of trade and commerce within their territory for reasons deemed necessary for the public good.
- Any proposed law to impose such restrictions must first receive the approval of the President.
Why It Matters
This article balances the freedom of trade across India with the need for individual states to manage their local economic interests and protect public welfare.
Landmark Judgements
No major landmark judgements.