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Constitution of India · Part XIII: Trade, Commerce and Intercourse Within the Territory of India · Restrictions on the legislative powers of the Union and of the

Article 304: Restrictions on trade, commerce and intercourse among States

In plain words

A State Legislature can by law tax goods brought in from other States or Union territories at the same rate as similar local goods, without discriminating between them. It can also impose reasonable restrictions on trade, commerce or intercourse with or within the State in the public interest.

  • A Bill imposing such restrictions needs the President's previous sanction before it is introduced.

A simplified explanation, prepared with AI assistance from the official text below and checked automatically against it for numbers and cross-references. The official text is the law and prevails over this summary. Not legal advice.

Official text

Notwithstanding anything in article 301 or article 303, the Legislature of a State may by law—

(a) impose on goods imported from other States [or the Union territories] any tax to which similar goods manufactured or produced in that State are subject, so, however, as not to discriminate between goods so imported and goods so manufactured or produced; and

(b) impose such reasonable restrictions on the freedom of trade, commerce or intercourse with or within that State as may be required in the public interest:

Provided that no Bill or amendment for the purposes of clause (b) shall be introduced or moved in the Legislature of a State without the previous sanction of the President.

Source: India Code (Legislative Department), the official text of the Constitution of India. As amended up to the Constitution (One Hundred and Sixth Amendment) Act, 2023. Text as on 10 September 2026. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.

Supreme Court judgments citing the article 304