Free flow of trade & commerce within the territory of India

TANMOY MUKHERJEE INSTITUTE OF JURIDICAL SCIENCE

Dr. Tanmoy Mukherjee

Advocate

Free flow of trade & commerce within the territory of India-

Tanmoy Mukherjee

Advocate

Before independence provincial tariffs & internal customs barriers severely restricted trade. The constituent assembly aimed to create an integrated national economy similar to the U.S., Commerce clause.

Dr. B.R Ambedkar emphasized that economic unity is as vital as political unity.

Part 13 ensures-

→ Free movement of goods

→ Free movement of persons

→ Free commercial intercourse

In State of Bombay V. R.M.D Chamarbaugwala AIR 19 SC it was held that trade includes legitimate activities, not gambling.

Article 301

The freedom is not absolute; it is subject to reasonable restrictions under Article 302 - 305.

Article 302-

Article 303 –

Article 304-

In Weston Electronic vs. State of Gujarat AIR 1988 SC, it was held that, tax on local & imported goods is constitutional.

 Article 305-

In Saghir Ahmad vs. State of U.P AIR 1954 SC, it was held that state monopoly doesn't violate trade freedom. 

Article 19(1)(g) & Article 301- 

Others Reference Case-

GST & an economic federalism-

 GST reinforces article 301 laws by-

-> Removing multiple indirect taxes.

-> Ensuring market integration.

-> Preventing fiscal barriers.