Power to levy different taxes is given in Article 246 of Constitution of India
Seventh Schedule of Article 246 has 3 types of lists
- Union List
- State List
- Concurrent List
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Union List |
State List |
Concurrent List |
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It contains the matter on which Central Government has the power to make Laws |
It contains the matters on which State Government has the power to make Laws |
It contains the matters on which both Central and State Government have the power to make laws |
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Entries in Union List
Direct Tax
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Name of Tax |
Entry No |
Description |
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Income Tax |
Entry 82 |
Taxes on income other than agricultural income |
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Wealth Tax |
Entry 86 |
Taxes on capital value of assets, exclusive of agricultural land, of individuals and companies; taxes on the capital of companies |
Indirect Tax
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Name of Tax |
Entry No |
Description |
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Customs Duties |
Entry 83 |
Duties of customs including export duties |
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Central Excise Duties |
Entry 84 |
Duties of excise on tobacco and other goods manufactured or produced in India except alcoholic liquors for human consumption; opium, Indian hemp and other narcotic drugs and narcotics, but including medicinal and toilet preparations containing alcohol or opium/Indian hemp/narcotic drugs/narcotics |
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Central Sales Tax |
Entry 92A |
Taxes on the sale or purchase of goods other than newspapers, where such sale or purchase takes place in the course |
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Service Tax |
Entry 97 |
Any other matter not enumerated in List II or List III including any tax not mentioned in either of those Lists |
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Entry 92C |
Tax on services (Not yet made effective) |
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Entry in State List
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Name of Tax |
Entry No |
Description |
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State Level VAT |
Entry 54 |
Tax on Sale or Purchase of goods (excluding newspapers) Except tax on interstate sale or purchase |
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State Excise Duty |
Entry 51 |
Duties of excise on alcoholic liquors for human consumption; opium, Indian hemp and other narcotic drugs and narcotics, but including medicinal and toilet preparations containing alcohol or opium/Indian hemp/narcotic drugs/narcotics |
Exam Questions
Question 2
Goods are imported at a port city. State Government of the port city intends to levy customs
duty on such imported goods as they have landed at a port which comes under its (State
Government‟s) jurisdiction. Examine whether the State Government‟s stand is correct in law.
View answer
No, the State Government‟s stand is not correct in law. Power to levy customs duty is vested
with Central Government by virtue of Entry 83 of Union List of Seventh Schedule to Article 246
of Constitution of India. Union List or List-I contains the matters in respect of which
Parliament (Central Government) has the exclusive right to make laws.
Question 3
Examine with reasons whether following statements are true or false:
(i) A State Government and the Central Government together can make laws in respect of taxes covered under Concurrent List.
(ii) In case of a Union Territory, Parliament can make laws in respect of a matter included
View answer
(i) False. Since, there is no head of taxation in Concurrent List (List – III), there does not arise any question of State Government and the Central Government together making
laws in respect of any tax.
(ii) True. Parliament has a further power to make any law for any part of India not comprised in a State even if such matter is included in State List.
Question 4
Examine the validity of following statements:
(i) Central Government is empowered to make laws in respect of excise duty leviable on liquors (meant for human consumption) containing alcohol.
(ii) Taxes on intra-State sale or purchase of goods are covered under Entry 92A of Union List of the Constitution
View answer
(i) Invalid. Duties of excise on alcoholic liquors meant for human consumption are covered
under Entry 51 of State List (List II). Thus, only State Governments are authorized to
make laws in respect of such excise duty.
(ii) Invalid. Taxes on intra-State sale or purchase of goods are covered under Entry 54 of
State List of the Constitution. Entry 92A of Union List of the Constitution covers central
sales tax..