Dividing power between two governments
India has two levels of government that both make laws — the Union and the states. So the Constitution has to say who can legislate on what.
It does this in the Seventh Schedule, which contains three lists of subjects. Whichever list a subject falls in decides which government can make law on it.
The relationship runs through three separate channels, and the Constitution deals with each in turn — legislative relations in Articles 245 to 255, administrative in Articles 256 to 263, and financial in Articles 268 to 293.
In a classic federation the two levels are roughly equal. India is not built that way. The Union has more subjects, wins every conflict, holds the residuary power, and can legislate on state subjects in five separate situations. This is why India is described as a federation with a strong Centre, or in Ambedkar's phrase, federal in form but unitary in spirit when the situation demands.
The three lists
The Seventh Schedule divides every subject of government into three lists.
| List | Who legislates | Subjects include |
|---|---|---|
| Union List | Parliament alone | Defence, foreign affairs, atomic energy, railways, banking, currency, citizenship, census |
| State List | State legislatures | Public order, police, public health, agriculture, land, local government, liquor, betting |
| Concurrent List | Both | Criminal law, marriage and divorce, education, forests, trade unions, electricity, bankruptcy |
The current counts differ from the original because amendments moved subjects between lists. Education, forests, weights and measures, and the protection of wild animals and birds were shifted from the State List to the Concurrent List by the 42nd Amendment, 1976 — a significant transfer of power to the Centre.
A subject that appears in none of the three lists — anything the framers did not foresee — belongs to Parliament under Article 248. In the United States and Australia residuary powers go to the states; India follows Canada, where they go to the Centre. This is one of the clearest signs of the Indian Union's centralising design.
When two laws conflict
On a Concurrent List subject, both Parliament and a state legislature can make law. What happens when the two laws contradict each other?
Article 254 answers it: the central law prevails, and the state law becomes void to the extent of the inconsistency. This is the doctrine of repugnancy.
A state law can survive a conflict on a Concurrent subject if it was reserved for the President's consideration and received presidential assent. Even then, Parliament can override it later by passing a fresh law on the same subject.
If a central law and a state law conflict on a Concurrent List subject, which prevails?
The central law, under Article 254. The state law becomes void to the extent of the inconsistency, unless it received presidential assent — and even then Parliament can override it by later legislation.
When Parliament can legislate on State subjects
The State List is supposed to be exclusive. In practice there are five situations where Parliament may legislate on it anyway.
| Article | Situation | Condition |
|---|---|---|
| Article 249 | In the national interest | The Rajya Sabha passes a resolution by two-thirds majority; valid for one year at a time |
| Article 250 | During a National Emergency | Parliament may legislate on any State subject; the law lapses six months after the Emergency ends |
| Article 252 | Two or more states request it | The states pass resolutions; the law then applies to those states, and any other state that adopts it later |
| Article 253 | To implement an international treaty | No state consent is needed at all |
| Article 356 | During President's Rule | Parliament legislates for the state while its legislature is suspended or dissolved |
249 national interest · 250 emergency · 252 states ask · 253 treaty · 356 President's Rule. Five doors into the State List, and only one of them — 252 — is opened by the states themselves.
Article 253 is the widest of the five. To implement any international treaty or convention, Parliament can legislate on any State List subject without asking any state — which is how central environmental and human rights legislation is often justified.
Administrative relations
Making law is one thing; carrying it out is another. Articles 256 to 263 govern how the two levels work together in administration.
| Article | What it provides |
|---|---|
| Article 256 | A state must comply with central laws, and the Union may give directions to ensure it |
| Article 257 | The Union may direct a state on matters affecting railways and communications of national importance |
| Article 261 | Public acts and records of each state must be given full faith and credit throughout India |
| Article 262 | Inter-state river water disputes — Parliament may bar even the Supreme Court from hearing them |
| Article 263 | The President may establish an Inter-State Council to investigate and advise on disputes between states |
If a state fails to comply with a Union direction under Article 256 or 257, the President may hold that the state government cannot be carried on in accordance with the Constitution — which is the trigger for President's Rule under Article 356. The direction power therefore carries real force behind it.
The Inter-State Council was finally set up in 1990, on the recommendation of the Sarkaria Commission. It is chaired by the Prime Minister, and its members include all Chief Ministers and six Union ministers.
The All-India Services
The IAS, IPS and Indian Forest Service are unusual. Their officers are recruited by the Union but serve in the states, and a state cannot dismiss them — only the Union can.
This gives the Centre a permanent administrative presence inside every state. Article 312 allows the creation of a new All-India Service, but only if the Rajya Sabha approves by a two-thirds majority — because it affects the states.
The IAS and IPS existed before the Constitution, as successors to the Indian Civil Service and the Indian Police. The Indian Forest Service was created later, in 1966, using the Article 312 procedure.
Financial relations
Taxes are divided the same way as legislative subjects — some belong to the Union, some to the states. But the Union collects far more than it spends on itself, and the states spend far more than they collect.
That gap is bridged by the Finance Commission.
A body appointed by the President every five years to recommend how central tax revenue should be shared between the Union and the states, and how much each state should receive. Its recommendations are advisory, not binding — but by convention they are almost always accepted.
| Body | Article | Role |
|---|---|---|
| Finance Commission | 280 | Recommends division of central taxes between Union and states, every five years |
| State Finance Commission | 243I | Recommends division of state revenue with panchayats and municipalities |
| GST Council | 279A | Recommends GST rates and rules; created by the 101st Amendment, 2016 |
The 101st Amendment (2016) introduced the Goods and Services Tax and created the GST Council, where the Union holds one-third of the voting weight and all states together hold two-thirds. A decision needs a three-fourths majority, so neither side can act alone.
The commissions that reviewed all this
| Commission | Year | Focus |
|---|---|---|
| Administrative Reforms Commission | 1966 | First major review of Centre-state relations after independence |
| Rajamannar Committee | 1969 | Appointed by Tamil Nadu; recommended greater state autonomy |
| Sarkaria Commission | 1983–88 | The most influential — recommended the Inter-State Council, restraint in using Article 356, and consultation before appointing Governors |
| Punchhi Commission | 2007–10 | Revisited the same questions; recommended fixed tenure for Governors and localised emergency powers |
Everything on one look
The three lists, the five entry points into the State List, and the financial machinery.
- The Seventh Schedule holds the three lists
- Union List — originally 97 subjects
- State List — originally 66 subjects
- Concurrent List — originally 47 subjects
- Article 248 gives residuary powers to Parliament
- Article 254 — the central law prevails in a conflict
- A Finance Commission is appointed every five years
- The GST Council needs a three-fourths majority to decide
- Article 249 — national interest, Rajya Sabha resolution
- Article 250 — during a National Emergency
- Article 252 — when two or more states request it
- Article 253 — to implement an international treaty
- Article 356 — during President's Rule
- Article 263 — the Inter-State Council
- Article 312 — creating a new All-India Service
- Residuary powers belong to Parliament, unlike the United States and Australia where they go to the states
- India follows Canada on residuary powers, not the United States
- The 42nd Amendment moved education and forests from the State List to the Concurrent List
- In a conflict on a Concurrent subject the central law prevails — Article 254
- A state law with presidential assent can still be overridden by later central legislation
- Article 253 needs no state consent — a treaty lets Parliament legislate on any State subject
- Article 252 is the only route the states themselves open
- An Article 249 resolution is passed by the Rajya Sabha, not the Lok Sabha, and lasts one year
- Finance Commission recommendations are advisory, not binding
- The Inter-State Council was set up in 1990, on the Sarkaria Commission's recommendation
- The Seventh Schedule divides legislative subjects into three lists
- The Union List originally had 97 subjects and covers defence, foreign affairs and railways
- The State List originally had 66 subjects and covers police, public health and agriculture
- The Concurrent List originally had 47 subjects and covers criminal law, education and forests
- The 42nd Amendment, 1976 moved education and forests from the State List to the Concurrent List
- Article 248 gives residuary powers to Parliament, following the Canadian model
- Article 254 provides that a central law prevails over a conflicting state law
- Article 249 lets the Rajya Sabha authorise Parliament to legislate on a State subject for one year
- Article 250 lets Parliament legislate on State subjects during a National Emergency
- Article 252 applies when two or more states request central legislation
- Article 253 lets Parliament legislate on any State subject to implement an international treaty
- Article 256 requires states to comply with central laws
- Article 262 deals with inter-state river water disputes
- Article 263 provides for an Inter-State Council, which was set up in 1990
- The Inter-State Council is chaired by the Prime Minister
- Article 280 provides for a Finance Commission appointed every five years
- Finance Commission recommendations are advisory and not binding on the government
- Article 312 allows a new All-India Service to be created with Rajya Sabha approval
- The 101st Amendment, 2016 introduced GST and created the GST Council under Article 279A
- A GST Council decision needs a three-fourths majority of weighted votes
- The Sarkaria Commission (1983-88) was the most influential review of Centre-state relations
- The Punchhi Commission (2007-10) recommended a fixed tenure for Governors