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Polity · CDS

POC12 — Federal Structure & Centre-State Relations

⚖ POC12 · Indian Polity – XII  ·  Chapter 12 CDS Level ★ High Priority
📌 CDS Focus: This chapter tests: (1) Three-list system — number of subjects in each, what happens in conflict, (2) Article numbers for Parliament's power to legislate on State List (249, 250, 252, 253), (3) Residuary powers (Art. 248), and (4) Financial relations — distribution of taxes. Conflict between Union and State List (Art. 254 — Union prevails on Concurrent), and the Inter-State Council (Art. 263) are concept questions.
PART A — LEGISLATIVE RELATIONS (Articles 245–255)

1. The Three-List System (7th Schedule)

🔵 UNION LIST (List I)

  • 100 subjects (originally 97)
  • Only Parliament can legislate
  • Defence, Atomic Energy, Foreign Affairs, Banking, Insurance, Currency, Posts & Telegraphs, Railways, Customs, Income Tax, Corporations
  • In conflict → Union List prevails

🟢 STATE LIST (List II)

  • 61 subjects (originally 66)
  • Only State Legislature can legislate (normally)
  • Police, Public Order, Agriculture, Irrigation, Forests, Local Govt, Education (before 42nd Amend.), Public Health, Roads
  • Parliament can legislate in special circumstances

🟡 CONCURRENT LIST (List III)

  • 52 subjects (originally 47)
  • Both Parliament and State can legislate
  • Criminal law, Marriage, Contracts, Bankruptcy, Electricity, Labour, Price Control, Education (after 42nd Amend.)
  • Conflict → Parliament law prevails (Art. 254)
💡 Mnemonic — List Subjects (current): Union = 100 subjects; State = 61 subjects; Concurrent = 52 subjects. Remember: 100-61-52. Residuary powers (Art. 248) are with Parliament. In conflict on Concurrent List — Union law prevails (Art. 254) — but state law can operate if it gets Presidential assent.

1.1 Parliament's Power to Legislate on State List Maximum PYQs

ArticleGroundApproval RequiredDuration
Art. 249National interest — Rajya Sabha passes resolution (2/3rd majority)RS resolution by 2/3rd1 year; renewable
Art. 250During National Emergency (Art. 352)Emergency proclamationDuration of Emergency + 6 months
Art. 252Two or more states request Parliament to legislateResolutions by 2+ state assembliesUntil state withdraws consent
Art. 253Implementing international treaties/agreementsNo special approval — Parliament's plenary powerIndefinite
Art. 256Administrative — states must comply with Parliamentary lawsDirection by CentreOngoing obligation
PART B — ADMINISTRATIVE & FINANCIAL RELATIONS

2. Administrative Relations (Articles 256–263)

📌 Centre's Directions to States

  • Art. 256 — States must exercise their executive power to comply with Union laws and Union executive power
  • Art. 257 — States cannot impede Union power; Centre can give directions to states on National Highways, railways, etc.
  • Art. 258 — Centre can delegate Union functions to States and vice versa
  • Art. 261 — Full faith and credit to public acts, records, and judicial proceedings of every State and the Union

📌 Inter-State Council (Art. 263)

  • President may establish by order an Inter-State Council to enquire into and advise on disputes/common interests of states
  • NOT a permanent body — constituted by President's order
  • First ISC established in 1990 (Sarkaria Commission recommendation)
  • Chaired by Prime Minister; CMs and some Union Ministers are members
  • Different from Inter-State Water Disputes Tribunals

3. Financial Relations (Articles 264–293)

Distribution of Tax Revenue between Centre and States is one of the most complex aspects of Indian federalism. The Finance Commission recommends this distribution every 5 years. Key articles governing financial relations:
ArticleTaxWho LeviesWho CollectsWho Gets
Art. 268Duties of excise on medicinal preparations (stamp duties, etc.)CentreStates (within their territory)States
Art. 269Taxes on sale/purchase of goods in interstate trade (CST)CentreCentreStates (assigned to states)
Art. 270All taxes except Art. 268 and 269 — divisible pool (income tax, corporation tax, excise)CentreCentreShared: Centre + States (FC recommends ratio)
Art. 271Surcharges and cesses on Union taxesCentreCentreCentre only (not shared with states)
Art. 275Grants-in-aid to statesStates (recommended by Finance Commission)
Art. 280Finance Commission — recommends distributionConstituted every 5 years
⚠ Centre-State Relations Traps: (1) Art. 249 — RS passes resolution (NOT any state); Art. 252 — states pass resolution. (2) Art. 254 — in conflict on Concurrent List, Union law prevails; BUT if state law gets Presidential assent, it prevails in that state. (3) Residuary powers = Parliament (Art. 248) — unlike USA where residuary powers are with states. (4) Art. 271 — surcharges go entirely to Centre (NOT shared). (5) Inter-State Council (Art. 263) is NOT a permanent body.

⚡ POC12 Memory Chart — Fast Revision

📋 Three Lists (7th Schedule)
  • Union: 100 subjects; Parliament only
  • State: 61 subjects; State only (normally)
  • Concurrent: 52 subjects; both
  • Conflict → Union law prevails (Art. 254)
  • Residuary → Parliament (Art. 248)
📜 Parliament on State List
  • Art. 249 — RS resolution (2/3rd); 1 yr
  • Art. 250 — National Emergency; during + 6 months
  • Art. 252 — 2+ states request; consent-based
  • Art. 253 — international treaties; unlimited
  • Art. 356 — President's Rule
💰 Financial Relations
  • Art. 268 — Levied by Centre; collected by States
  • Art. 270 — Divisible pool; FC recommends share
  • Art. 271 — Surcharges → Centre only
  • Art. 275 — Grants-in-aid to states
  • Art. 280 — Finance Commission
⚖️ Conflict Resolution
  • Union List vs State: Union prevails always
  • Concurrent conflict: Union prevails (Art. 254)
  • State law + Presidential assent: State prevails
  • Residuary: Parliament (Art. 248)
  • Sarkaria Commission → ISC set up 1990
🏛️ Inter-State Bodies
  • Inter-State Council — Art. 263; PM chairs
  • NOT permanent; constituted by President
  • National Development Council — replaced by NITI Governing Council
  • Inter-State Water Tribunal — different from ISC
🔑 Key Article Numbers
  • Art. 245 — Parliament + State legislatures
  • Art. 248 — Residuary powers: Parliament
  • Art. 249 — RS resolution for State List
  • Art. 253 — International treaties
  • Art. 254 — Concurrent conflict → Union wins

📄 Topic-Wise PYQs & Tricky Questions

Q1. How many subjects are currently in the Concurrent List of the 7th Schedule? CDS PYQ
(a) 47(b) 52(c) 66(d) 97
✔ Answer: (b) 52
Currently, the Concurrent List has 52 subjects (originally 47). The Union List has 100 subjects (originally 97), and the State List has 61 subjects (originally 66). The 42nd Amendment (1976) shifted several subjects (including Education, Forests, Weights and Measures, etc.) from the State List to the Concurrent List. In case of conflict between Parliamentary and State law on Concurrent subjects, Parliamentary law prevails (Art. 254).
Q2. Parliament can legislate on State List subjects when Rajya Sabha passes a resolution by 2/3rd majority under: CDS PYQ
(a) Article 249(b) Article 250(c) Article 252(d) Article 253
✔ Answer: (a) Article 249
Article 249 empowers Parliament to legislate on a State List subject when the Rajya Sabha passes a resolution by 2/3rd majority declaring that it is necessary in the national interest. This law remains in operation for one year (renewable). Art. 250 = during National Emergency; Art. 252 = when two or more states pass resolutions requesting Parliament to legislate; Art. 253 = for international treaties (no special RS resolution needed).
Q3. Residuary powers (subjects not in any list) are vested in: CDS PYQ
(a) States(b) Parliament(c) Shared equally(d) President's discretion
✔ Answer: (b) Parliament
Under Article 248, residuary powers (the power to legislate on any matter not enumerated in any of the three lists) is vested in Parliament. This is a key unitary feature of India — unlike the USA and Australia where residuary powers are with states. Parliament can legislate on any subject not in Union, State, or Concurrent List. GST was initially not in any list — Parliament legislated using residuary powers before the 101st Amendment formalised it.
Q4. What happens when a State law on a Concurrent List subject conflicts with a Parliamentary law? CDS PYQ
(a) State law prevails always(b) Parliamentary law prevails(c) The law made later prevails(d) Both operate simultaneously
✔ Answer: (b) Parliamentary law prevails
Under Article 254, in case of conflict between a Parliamentary law and a State law on a Concurrent List subject, the Parliamentary law prevails and the State law is void to the extent of repugnancy. However, there is an exception: if the State law has received Presidential assent, then the State law prevails in that state — Parliament can still subsequently override it.
Q5. Surcharges and cesses levied by the Centre under Article 271 are: Tricky
(a) Shared equally with states(b) Shared as recommended by Finance Commission(c) Entirely retained by the Centre(d) Given entirely to states
✔ Answer: (c) Entirely retained by the Centre
Under Article 271, surcharges on taxes and cesses levied by the Centre are entirely retained by the Centre — they are NOT shared with states and are NOT part of the divisible pool. This is a controversial provision — the Centre has over the years levied many cesses and surcharges (like Krishi Kalyan Cess, Swachh Bharat Cess, education cess) precisely to keep more revenue away from the mandatory state share, which has been criticised by states.
Q6. The Inter-State Council established under Article 263 is chaired by: CDS PYQ
(a) President of India(b) Prime Minister(c) Vice-President(d) Home Minister
✔ Answer: (b) Prime Minister
The Inter-State Council (ISC) set up under Article 263 is chaired by the Prime Minister. Its members include all Chief Ministers, Chief Ministers of Union Territories with legislatures, and six Cabinet Ministers nominated by the PM. The ISC was first established in 1990 based on the recommendation of the Sarkaria Commission on Centre-State relations. It enquires into and advises on disputes between states and common interests.
Q7. Parliament can legislate on State List subjects to implement international treaties under: CDS PYQ
(a) Article 249(b) Article 250(c) Article 252(d) Article 253
✔ Answer: (d) Article 253
Article 253 empowers Parliament to legislate on any subject (including State List subjects) for implementing international treaties, agreements, or conventions, or decisions of international organisations. No special approval from Rajya Sabha or states is required — Parliament has plenary power. This is how India enacted laws on wildlife protection, environment, etc. to comply with international obligations. There is no time limit on such laws.
Q8. Education was transferred from the State List to the Concurrent List by which Amendment? Tricky
(a) 24th Amendment (1971)(b) 42nd Amendment (1976)(c) 44th Amendment (1978)(d) 86th Amendment (2002)
✔ Answer: (b) 42nd Amendment (1976)
The 42nd Amendment (1976) transferred several subjects from the State List to the Concurrent List, including Education, Forests, Protection of Wild Animals and Birds, Administration of Justice, and Weights and Measures. Before 1976, education was exclusively a state subject. After the 42nd Amendment, both Parliament and State legislatures can legislate on education. The 86th Amendment (2002) made primary education (Art. 21A) a Fundamental Right — a different matter.

📋 Quick Reference — POC12

📋 3 Lists (Current)
  • Union: 100 subjects (Parliament)
  • State: 61 subjects (State legislature)
  • Concurrent: 52 subjects (both)
  • Residuary: Parliament (Art. 248)
  • Conflict on Concurrent: Union prevails
📜 Parliament on State List
  • Art. 249 — RS 2/3rd resolution; 1 yr
  • Art. 250 — National Emergency
  • Art. 252 — 2+ states request
  • Art. 253 — international treaties
  • Art. 254 — Union wins on Concurrent
💰 Tax Distribution
  • Art. 268 — Levied Centre; collected States
  • Art. 270 — Divisible pool (FC ratio)
  • Art. 271 — Surcharges → Centre only
  • Art. 275 — Grants-in-aid to states
  • Art. 280 — Finance Commission
🔑 Changed by 42nd Amend.
  • Education: State → Concurrent
  • Forests: State → Concurrent
  • Wild animals: State → Concurrent
  • Weights & measures: State → Concurrent
  • Justice: State → Concurrent
🏛️ Administrative Relations
  • Art. 256 — States comply with Union laws
  • Art. 257 — States can't impede Union
  • Art. 258 — Delegation Centre↔State
  • Art. 263 — Inter-State Council (PM chairs)
⚖️ Key Conflict Rules
  • Union List: only Parliament; no conflict
  • Concurrent conflict: Union wins (Art. 254)
  • Exception: State + Presidential assent → prevails
  • Residuary: Parliament (Art. 248)
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