Article 303 - Restrictions on the legislative powers of the Union and of the States with regard to trade and commerce

Restriction on inter-state trade preference bars laws favouring one state except for scarcity exception declared by Parliament.

Article 303 bars Parliament and State Legislatures from making laws that give preference to one State or discriminate between States in matters of trade and commerce under the Seventh Schedule, while permitting Parliament, by express legislative declaration, to authorize preference or discrimination when necessary to deal with scarcity of goods in any part of the territory of India.