Article 286 of CoI : Article 286: Restrictions as to imposition of tax on the sale or purchase of goods.

Explanation using Example

Example 1:

Scenario: A company based in Maharashtra sells machinery to a company in Gujarat.

Application of Article 286:

• According to Section (1)(a), Maharashtra cannot impose a sales tax on this transaction because the sale occurs outside the state of Maharashtra.
• Gujarat, being the destination state, may impose its own tax regulations on the purchase, but Maharashtra has no authority to tax this sale.

Example 2:

Scenario: An Indian company based in Tamil Nadu exports textiles to a buyer in the United States.

Application of Article 286:

• According to Section (1)(b), Tamil Nadu cannot impose a tax on the export of textiles because the transaction involves the export of goods out of the territory of India.
• The central government may have specific export duties or regulations, but the state of Tamil Nadu cannot impose any tax on this export transaction.

Example 3:

Scenario:...

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