Centre- State Relation

Introduction ·         Federal– divides all powers (legislative, executive and financial)

·         No division in Judicial system – Integrated Judicial

·         Max harmony & coordination b/w them – for effective Centre state relation.


Legislative Relations Art 245- 255 – Part XI
Territorial extent of Centre & state Legislature [Art 245]


·         Parliament can make laws for – Whole India

·         State Legislature can make laws for – state only

·         Parliament also has – Extra Territorial Legislation


·         President can makes rule & regulation for Ladakh, Lakshadweep, Andaman and Nicobar, Daman & Diu & Dadra and Nagar Haveli

·         The governor can direct an act not applicable to a scheduled area in the state or applicable with specified modifications and exceptions

·         Governor of Assam – act of parliament not applicable to tribal areas in state or applicable with modifications and exceptions

·         The President enjoys same power in tribal areas of Meghalaya, Tripura and Mizoram


Distribution of Legislative Subject Art-248

·         Union List (98 subjects – 97 originally) – Centre

·         State List (59 subjects – 66 originally) – State

·         Concurrent (52 subjects – 47 originally) – in case of deadlock centre prevails

·         Residuary – Parliament can make laws with respect to any matter of India not included in either lists

·         101st amendment act of 2016 – special provision with respect to goods and services tax.



·         In a conflict b/w state & centre – centre prevails

·         Exception state law reserved for consideration and received his assent, state law prevails.

Parliamentary Legislation in the State Field ·         When Rajya Sabha Passes a Resolution on the matter of national interest, Parl. make laws

·         2/3 (P+V); Validity – 1 year

·         Need to remove by any no. Of time max 1 year.


During a National Emergency –

·         Parl. Law state List – in National emergency

·         after 6 Months (X) when Emergency ends

·         SLA can make law on Same; in case of deadlock centre Prevails.


When state make request –

·         2 or more state passes a resolutions requesting Parl. to exact Laws – state List – parl.

·         Law applicable to states who passed resolution (✓)

Art. 253 To implement international Agreements – For implementing international treaties, agreement & convection – Geneva Convection etc.
During President Rule (Art 350) ·         For concerned state – Validity does not expire after, Emer.

·         Parl. can make – law can be repealed or enacted by SLA after President’s rule is revoked

Administrative Relations (Article 256 – Article 263 :  Part XI)
Distribution of Exe. Power ·         Union List – Centre Exclusive power

·         State List – state Exclusive.

·         Concurrent List – Exclusive power rest with state.


Obligation of state &Centre ·         2 restrictions on state for exercising executive power of state.

a.       As to ensure compliance with the laws made by Parliament and any existing laws which apply to the state

b.       As to not impede or prejudice the exercise of executive power of the Centre and the state


Direction of State ·         States get direction for:

a.       Construction& Maintenance of means of Communication

b.       Protection of Railway

c.        Edu of mother tongue

d.       Drawing & execution of specific schemes for the welfare of tribes(ST)


Mutual delegation of Function ·         It is rigid single state cannot ask to make rules const. Provide interstate delegation to remove deadlock.
Cooperation Between the Centre and States ·         Inter water disputes (262)

·         Established interstate Council (263)

·         Full & Faithful Credit (261)


All India Services, Public Service Commissions and Integrated Judicial System a.       All India Services

·         [IAS, IPS and IFS]

·         Central services + state services

·         In 1947 – ICS – IAS; – IPS; 1966 – (+) IFS

Article 312 – Authorised Parl. to create new AIS on the basis of RS resolution

b.       Public Service Commissions –

·         Chairman – President (Removed) ,Governor (Appointed)

·         JSPSC – (President Removed & Appointed)


c.        Integrated Judicial System –

·         Appointment, transfer etc are in the hard of Center

Legislative Relation ·         Territorial Extent of C –S Legislature

·         Distribution of Legislative Subjects

LIST -2 The state List –

a.       state legislatures have exclusive powers, in normal circumstance

b.       59 subjects here like sanitation, agriculture etc.

c.        Matters of  regional & Local importance

Art 355 ·         Impose duties on Centre

·         Govt. By president submit report to the centre

·         State Election Commission –

a.       by governor

b.       removed by president only

Extra Const. Body ·         NITI Ayog, NDC, NIC, Zonal Council etc – advisory body to promote cooperation & Co-ordination below the center & state.

·         Conferences are organised such as governor conference – POI

·         CM Conferences – PM etc.

Relations during Emergency ·         During Article 352 – National emergency – Centre becomes entitled to give executive directions to a state on ‘any’ matter.

·         During Article 356 – President’s Rule imposed – President can assume to himself the functions of the state government and powers vested in the Governor or any other executive authority in the state.

·         During Article 360 –  financial emergency – Centre can direct the states to observe canons of financial

Financial Relation(Article 268- Article 293) – Part XII
Distribution of Taxes Centre to State:

1.       Parliament has exclusive power to levy taxes on union list

2.       State legislature can levy taxes on subjects in state list

3.       No tax entries in concurrent list – 101st amendment act of 2016 – special provisions for goods and service tax – concurrent power of Parliament and state legislators

4.       Residue re power of taxation – Parliament – gift tax wealth tax expenditure tax

Distribution of tax revenues ·         80th Amendment Act of 2000 and 101st Amendment Act – Major changes in distribution scheme amendment provided for subsuming various central indirect taxes and levies such as:

1.       Central excise duty, additional excise duties, excise duties,

2.       Service tax additional customs duty (CVD).

3.       Sales tax, entertainment tax, Luxury tax

4.       Octroi and entry tax, purchase tax.

5.       Taxes on lottery, betting and gambling, etc

·         Distribution as follows:

1.       Taxes levied by Centre but collected and appropriated by the state – Art. 268.

2.       Taxes levied and collected by the Centre but assigned to the state – Art. 269.

3.       Levy and collection of GST in course of interstate trade or commerce – Art. 269-A

4.       Taxes levied and collected by the Centre but distributed between the Centre and states – Art. 270

5.       Surcharge on certain taxes and duties for the purpose of the Centre – Art. 271

6.       Taxes levied and collected and retained by the states

Distribution of non-tax revenues ·         The Centre (receipts from the following major sources)

1.       Posts and telegrams.

2.       Railways.

3.       Banking.

4.       Broadcasting.

5.       Coinage and currency.

6.       Central Public sector Enterprises.

7.       Escheat and Lapse

8.       Others

·         The States

1.       Fisheries

2.       Irrigation

3.       Forest

4.       State Public sector Enterprises.

5.       Escheat and Lapse

6.       Others

Grants-in-Aid to the States ·         Statutory Grant (275)

·         Discretionary Grant (282)

GST Council ·         Article 279-A: President to constitute GST Council – to facilitate cooperation and coordination between Centre and state
Finance Commission ·         quasi-judicial body, Const. Body, Chairman + 4 other Member

·         15th FC → NK Singh (4th F.C→YV Ready) ; 1st FC → K.C. Neogy recommend → President

1.       Distribution of Taxes

2.       Bases to govern ‘grants–in–aids’

3.       All the matters for sound finance.

·         Protection of state Interest

·         Borrowing of Centre & state

·         Inter-Governmental Tax Immunities

1.       Exemption of Central property from state taxation

2.       Exemption of state property or Income from central taxation

Emergency Provision 1. National Emergency→ (352) →President Modify the Const. Distribution of revenue b/w Centre & state.

2. Financial (360)

·         Reduced salary & allowance of all class people reviving in state.

·         Reserved bill for the consideration of POI.

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