How are taxes distributed between the Union and the States?
Article 270 states that all taxes and duties listed in the Union List, except those mentioned in Articles 268, 269, and 269A, and any cess levied for specific purposes, shall be levied and collected by the Government of India and distributed between the Union and the States. A prescribed percentage of the net proceeds of such taxes and duties shall be assigned to the States where they are leviable and distributed among them according to principles prescribed by the President, after considering the recommendations of the Finance Commission.