Article 287

Exemption of Union and Railway Electricity from State Taxation

Official heading: “Exemption from taxes on electricity”

Check this article against the official editionAwaiting human legal review

Source edition: The Constitution of India (as on 1 May 2026)
Source locator: Part XII, Article 287, printed page 169
Last human source-link check: Not yet checked
Last human legal review: Not yet reviewed

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1. In One Sentence

Prohibits States from imposing taxes on electricity consumed by the Government of India or consumed in the construction, maintenance, or operation of railways.

2. What It Means in Everyday Language

Article 287 creates a specific constitutional tax immunity protecting the electrical power consumption of the Central Government and the Indian Railways.

No State law can impose a tax on the consumption or sale of electricity (whether produced by government or private power plants) that is: (a) consumed by the Government of India, or sold to the Government of India for consumption by that Government; or (b) consumed in the construction, maintenance, or operation of any railway by the Union or a railway company operating that railway.

Clause (b) further mandates that electricity tariffs charged to the Union or railways must not exceed the price charged to other substantial commercial consumers.

3. Practical Illustrative Example

Everyday Scenario:

A State Government levies an electricity duty of 50 paise per unit on all power consumed within the State.

Core takeaway: Under Article 287, the State power board cannot levy this duty on power consumed by railway locomotives, railway signalling, or Central Government radar stations.

Illustrative Notice: The immunity applies to the Union Government and railways; it does not exempt ordinary central public sector corporations (like public sector banks or oil companies).

4. Important Limits, Qualifications & Exceptions

Article 287 prevents State duties from burdening critical national infrastructure and railways.

Union consumption immunity: Covers all electricity consumed directly by the Government of India.
Railway operational protection: Shields electricity used in railway construction, maintenance, and train operation.
Tariff parity rule: Prevents discriminatory higher base tariffs on central and railway power.

5. Operative Constitutional Text

Save in so far as Parliament may by law otherwise provide, no law of a State shall impose, or authorise the imposition of, a tax on the consumption or sale of electricity (whether produced by a Government or other persons) which is— (a) consumed by the Government of India, or sold to the Government of India for consumption by that Government; or (b) consumed in the construction, maintenance or operation of any railway by the Government of India or a railway company operating that railway, or sold to that Government or any such railway company for consumption in the construction, maintenance or operation of any railway, and any such law imposing, or authorising the imposition of, a tax on the sale of electricity shall secure that the price of electricity sold to the Government of India for consumption by that Government, or to any such railway company as aforesaid for consumption in the construction, maintenance or operation of any railway, shall be less by the amount of the tax than the price charged to other consumers of a substantial quantity of electricity.

Transcription for reference; compare with the linked official editionNot yet verified by a human legal reviewer

6. Sources & Historical Assembly Deliberations

Assembly quotations are withheld until wording, dates, and attribution have been checked against the primary record.

Sources & Citation Metadata

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Constitutional TextThe Constitution of India (as on 1 May 2026)Cited PDF page
Government of India (Legislative Department, Ministry of Law and Justice) • Part XII, Article 287, printed page 169 • Human source-link check pending
Primary PDF accessed and transcribed with AI assistance on 14 October 2026. Formatting and amendment annotation markers are omitted; operative wording is retained. This is not human legal review. Later amendments and commencement notifications have not been comprehensively checked.

Human legal review is pending; compare the text with the cited editionNon-partisan educational resource