What is the significance of the words "Taxes levied and collected by the Union but assigned to the States" in Article 269?
The significance of the words "Taxes levied and collected by the Union but assigned to the States" in Article 269 is that certain taxes, specifically those on the sale or purchase of goods and consignment of goods (except as provided in article 269A), are collected by the Government of India. However, these taxes are assigned to the states and are deemed to have been assigned from April 1, 1996, in a manner provided in clause (2). The explanation further clarifies that this clause applies to taxes on sale or purchase of goods other than newspapers when the sale or purchase takes place in the course of inter-state trade or commerce.