Constitution Section 303 — Restrictions on the legislative powers of the Union and of the States with regard to trade and commerce

Part XIII — TRADE, COMMERCE AND INTERCOURSE WITHIN THE — TERRITORY OF INDIA

Constitutional

Summary

Neither Parliament nor any State Legislature can pass a law that gives one State an advantage over another, or that treats one State differently from another, when the law is based on trade and commerce matters listed in the Seventh Schedule. However, Parliament can make such a law if the law itself states that it is needed to handle a shortage of goods in any part of India.

Official Text

(1) Notwithstanding anything in article 302, neither Parliament nor the Legislature of a State shall have power to make any law giving, or authorising the giving of, any preference to one State over another, or making, or authorising the making of, any discrimination between one State and another, by virtue of any entry relating to trade and commerce in any of the Lists in the Seventh Schedule.

(2) Nothing in clause (1) shall prevent Parliament from making any law giving, or authorising the giving of, any preference or making, or authorising the making of, any discrimination if it is declared by such law that it is necessary to do so for the purpose of dealing with a situation arising from scarcity of goods in any part of the territory of India.