(1) Taxes on services shall be levied by the Government of India and such tax shall be collected and appropriated by the Government of India and the States in the manner provided in clause (2).

 

(2) The proceeds in any financial year of any such tax levied in accordance with the provisions of clause (1) shall be —

 

(a) collected by the Government of India and the States;

 

(b) appropriated by the Government of India and the States,

 

in accordance with such principles of collection and appropriation as may be formulated by Parliament by law.

Debate Summary

Article 268A was inserted in 2003 and was not discussed in the Constitutent Assembly. This Article was subsequently ommitted in 2016.