Q. Consider the following statements:
1.The Constitution gives power to states to impose any tax or duty on the generation of electricity.
2.Article 286 of the Constitution prohibits states from imposing any taxes or duties on the supply of goods or services or on both where the supply takes place outside the state.
Select the correct statements using the codes given below:

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: B
Notes:

Explanation –

Statement 1 is incorrect. Entry-53 of List-II (State List) authorizes states to put taxes on the consumption or sale of electricity in its jurisdiction. This does not include the power to impose any tax or duty on the generation of electricity.

Statement 2 is correct. Article 286 of the Constitution prohibits states from imposing any taxes or duties on the supply of goods or services or on both where the supply takes place outside the state.

Source: ForumIAS