Finance, Property, Contracts
(1) Taxes on inter-State sale/purchase/consignment of goods (except GST under Article 269A) are levied and collected by the Union but assigned to the states. (2) The net proceeds (excluding the Union Territory share) don't form part of the Consolidated Fund of India - they're assigned to and distributed among the relevant states per principles Parliament formulates. (3) Parliament may define when a sale/purchase/consignment counts as "inter-State".
For taxes on goods moving between states, the Union collects the tax (since it would be impractical for individual states to collect tax on genuinely inter-state transactions) but the money is then assigned back to the states, following Parliament-set distribution principles - reflecting that this revenue really belongs to states even though the Union administers the collection.
Before GST replaced most of this system, the Central Sales Tax on inter-state goods movement was collected by the Union but the revenue was assigned to the originating states under this article's framework.