88. The Constitution (Eighty-eighth Amendment) Act, 2003 – It shall come into force on such date
as the Central Government may, by notification in the Official Gazette, appoint.
After Article 268 of the Constitution, the following article shall be inserted, namely :
“268A. (1) Taxes on services shall be levied by the Government of India and such tax shall be
collected and appropriated by the Government of India and the States in the manner provided in
(2) The proceeds in any financial year of any such tax levied in accordance with the provisions of
clause (1) shall be – (a) collected by the Government of India and the States; (b) appropriated by the
Government of India and the States, in accordance with such principles of collection and
appropriation as may be formulated by Parliament by law”.
In Article 270 of the constitution, in clause(1), for the words and figures “Article 268 and 269”,
the words, figures and letter “Articles 268, 268A and 269” shall be substituted.
In the Seventh Schedule to the Constitution, in List I-Union List, after entry 9.2B, the following
entry shall be inserted, namely : “92C. Taxes on services”.