Article 271: Subject to the express GST exception, Parliament may increase by surcharge the duties or taxes referred to in Articles 269 and 270 for purposes of the Union, and the entire proceeds of that surcharge form part of the Consolidated Fund of India.
Article 271 and Article 272 of the Constitution of India
Article 271 deals with a surcharge that Parliament may impose on certain duties and taxes for the purposes of the Union. Article 272, which formerly dealt with certain Union excise duties and their possible distribution to the States, is no longer operative because it was omitted by the Constitution (Eightieth Amendment) Act, 2000 with effect from 9 June 2000.
Current legal position: Article 271 remains in force. Its present text excludes the goods and services tax under Article 246A from the surcharge power stated in Article 271. Article 272 was omitted with effect from 9 June 2000 and should not be presented as a currently operative constitutional provision.
Article 271 - Surcharge on certain duties and taxes for purposes of the Union
Meaning of surcharge: In the context of Article 271, a surcharge is an additional charge imposed by Parliament by increasing a duty or tax referred to in Articles 269 and 270, subject to the constitutional exception for goods and services tax under Article 246A. The proceeds of a surcharge imposed under Article 271 form part of the Consolidated Fund of India.
Article 271 begins with a non-obstante clause - "Notwithstanding anything in articles 269 and 270" - and authorizes Parliament to increase the duties or taxes referred to in those Articles by imposing a surcharge for Union purposes. The whole proceeds of such a surcharge form part of the Consolidated Fund of India.
The present constitutional text contains an important GST limitation. The words excluding "the goods and services tax under article 246A" were inserted by the Constitution (One Hundred and First Amendment) Act, 2016. Accordingly, Article 271 does not provide the constitutional route for imposing a surcharge on GST under Article 246A.
Article 271 in substance
What is the Consolidated Fund of India?
The Consolidated Fund of India is the principal constitutional fund of the Union under Article 266 of the Constitution. Article 271 expressly directs that the whole proceeds of a surcharge imposed under it form part of this Fund.
Article 272 - Omitted from the Constitution
Article 272 formerly concerned Union duties of excise and permitted Parliament, by law, to provide for payment to the States of the whole or part of the net proceeds of specified duties. That historical text should not be treated as current law.
Omission of Article 272: The Constitution (Eightieth Amendment) Act, 2000 omitted Article 272 with effect from 9 June 2000 as part of changes to the constitutional scheme for distribution of Union tax revenues.
Article 271 and Article 272 - Quick comparison
| Provision | Subject | Current status |
|---|---|---|
| Article 271 | Surcharge on certain duties and taxes for purposes of the Union | In force, with the constitutional exception for GST under Article 246A |
| Article 272 | Former provision concerning certain Union excise duties and distribution to States | Omitted by the Constitution (Eightieth Amendment) Act, 2000 with effect from 9 June 2000 |
Relationship with Articles 269 and 270
Article 271 expressly operates notwithstanding Articles 269 and 270. For the present constitutional framework on Union taxation and distribution of tax revenues, readers should therefore read Article 271 together with Article 269 and Article 270.
Official legal sources
For the authoritative constitutional text and amendment history, see the Constitution of India published by the Legislative Department, Ministry of Law and Justice and the Constitution (Eightieth Amendment) Act page of the Legislative Department. The India Code portal is another official Government of India source for legislation.
This page is intended as a general explanation of the constitutional provisions. For a particular tax or constitutional dispute, the applicable statute, Finance Act, constitutional amendments, notifications and judicial decisions should also be examined.