Jurisprudence, Interpretation and General Laws · Constitution of India

Centre-State Relations and Federal Structure in the Indian Constitution

Updated 11 October 2026 · Fact-checked

Centre-State relations are the constitutional rules that divide legislative, administrative and financial powers between the Union and the States. Legislative powers sit in the Union, State and Concurrent Lists of the Seventh Schedule. To solve a question, find the subject's list, apply pith and substance, and check repugnancy and Article 254.

Understand Centre-State Relations and Federal Structure

India is described as a Union of States. The Constitution divides power between the Union and the States, but it leans towards the Centre. Many call this a quasi-federal or federal system with a unitary bias. The Supreme Court has treated federalism as part of the basic structure.

Start with legislative relations. The Seventh Schedule has three lists. The Union List covers subjects only Parliament can make laws on, such as defence and banking. The State List covers subjects such as public order, police and agriculture, on which States legislate. The Concurrent List covers subjects such as criminal law, marriage and contract, on which both can legislate. Residuary powers (subjects in no list) belong to Parliament under Article 248.

Subjects overlap, so courts use doctrines. Pith and substance asks what the law is really about. If its true subject lies within the enacting legislature's list, the law is valid even if it incidentally touches a subject in another list. Colourable legislation means a legislature does indirectly what it cannot do directly. The form looks within its power but the substance is not. Such a law is void. The test is competence, not motive. Harmonious construction means entries are read together to give effect to each. The doctrine of repugnancy applies to the Concurrent List: if a State law conflicts with a Union law, the Union law prevails and the State law is void to the extent of repugnancy (Article 254(1)). Under Article 254(2), a State law that received the President's assent can prevail in that State, though Parliament can later override it.

Parliament can legislate on State List subjects in special cases: when the Rajya Sabha passes a resolution by two-thirds of members present and voting that it is in the national interest (Article 249), during a Proclamation of Emergency (Article 250), by State consent (Article 252), to implement international treaties (Article 253), and on failure of constitutional machinery in a State (Article 356).

Administrative relations: the executive power of a State must be exercised so as not to impede Union laws, and the Union can give directions to States on certain matters. Financial relations: taxes are divided by the lists, and the Union shares revenue with States through the Finance Commission under Article 280. The Goods and Services Tax is governed by Article 246A and the GST Council under Article 279A.

Key rules to remember

Three Lists of the Seventh Schedule: List I = Union (only Parliament); List II = State (only State Legislature); List III = Concurrent (both); Article 246 sets the order of priority: Union List over Concurrent List over State List.
Residuary power: Subjects not in any list → Parliament (Article 248); Contrast with the USA, where residuary power lies with the States.
Pith and substance: True nature of the law within the competence of the enacting legislature → valid, even if it incidentally trenches on another list; Look at the dominant purpose and effect, not the label.
Colourable legislation: Cannot do directly → cannot do indirectly; Test is legislative competence, not good faith or bad faith.
Repugnancy in the Concurrent List: Union law vs State law conflict → Union law prevails; State law void to the extent of repugnancy (Art. 254(1)); Exception: State law reserved for the President and assented to prevails in that State (Art. 254(2)), subject to Parliament's later law.
Parliament's power over the State List: Art. 249 (Rajya Sabha resolution, two-thirds present and voting), Art. 250 (Emergency), Art. 252 (State consent), Art. 253 (treaties), Art. 356 (failure of machinery); Learn each article with its trigger.
Financial relations: Finance Commission: Art. 280; GST: Art. 246A and Art. 279A; Union and States share taxes and grants through these bodies.

How to solve Centre-State Relations and Federal Structure questions

Use this order for any question on Centre-State relations, whether it is a theory question or a problem on the validity of a law.

1Identify the type of relation asked: legislative, administrative or financial. Name it in your first line.
2State the relevant constitutional provision, such as Article 246 and the Seventh Schedule, with the three lists.
3For a validity problem, find the true subject of the law and match it to an entry in the Union, State or Concurrent List.
4Apply the doctrine that fits: pith and substance for incidental overlap, colourable legislation for indirect evasion, repugnancy for Concurrent List conflict.
5If the law is on the State List, check whether any special power lets Parliament legislate (Articles 249, 250, 252, 253, 356).
6Explain the effect on the facts: valid, void in full, or void to the extent of repugnancy.
7Write a clear conclusion in one or two lines that answers the question asked.

Quickest way: Subject, List, Doctrine, Conclusion

When to use it: Use this for short-note and problem questions when time is limited.

Underline the subject matter of the law in the question.
Write which list it belongs to and cite Article 246.
Add the one doctrine that decides the issue.
Close with a one-line conclusion on validity.
For theory questions, use three headings: legislative, administrative, financial, with two or three points each.

Common mistakes in Centre-State Relations and Federal Structure

Saying the State may always make laws on the State List and Parliament never can.
Students memorise the lists but skip the exceptions.
Fix: Learn the five situations in which Parliament can legislate on State subjects and quote the article for each.
Treating pith and substance and colourable legislation as the same doctrine.
Both deal with overlap between lists.
Fix: Pith and substance saves a law with incidental overlap. Colourable legislation strikes down a law that uses a disguise to cross into a forbidden field.
Stating that a repugnant State law is always void.
The rule is remembered without Article 254(2).
Fix: Say it is void to the extent of repugnancy, and mention the President's assent exception.
Placing residuary power with the States.
Confusion with other federations.
Fix: Remember Article 248: residuary power belongs to Parliament.
Writing only definitions and not applying them to the facts.
Students prepare notes but not answers.
Fix: Follow the provision, analysis, conclusion order and tie every point to the facts given.

Worked examples

Example 1

A State Legislature passes a law taxing the sale of certain goods. The law also has a provision which incidentally affects the interstate movement of those goods, a subject on which Parliament alone may legislate. Is the State law valid?

Show the solution

Provision: Article 246 and the Seventh Schedule divide the legislative powers. A State can legislate only on State List and Concurrent List subjects.
Doctrine: under pith and substance, the court looks at the true nature and dominant purpose of the law.
Analysis: the true subject of the law is taxation of sales within the State, which falls within the State's power. The effect on interstate movement is only incidental.
Test: an incidental encroachment on a Union subject does not make the law invalid, provided the law is not a disguise for legislating on the Union subject.
Check colourable legislation: nothing suggests the State is using the sales tax as a cover to regulate interstate trade.

Answer: The State law is valid under the doctrine of pith and substance, because its true subject is within the State's competence and the encroachment is merely incidental.

Example 2

Parliament has enacted a law on a Concurrent List subject. A State Legislature later enacts a law on the same subject that conflicts with it, and the State Bill was not reserved for the President. What is the position of the State law?

Show the solution

Provision: Article 254 deals with inconsistency between Union and State laws on Concurrent List subjects.
Rule: under Article 254(1), if a State law is repugnant to a law made by Parliament, the Parliamentary law prevails.
Effect: the State law is void to the extent of the repugnancy, not necessarily in full.
Exception: under Article 254(2), a State law reserved for the President's consideration and assented to would prevail in that State. This did not happen here.
Note: even where assent is given, Parliament can later make a law on the same matter that overrides the State law.

Answer: The State law is void to the extent of its repugnancy to the Union law under Article 254(1), because it did not get the President's assent.

Exam tips

Write Article numbers with each rule. Examiners reward the provision first, then analysis, then conclusion.
Learn two or three entries from each list as examples, such as defence in the Union List, public order in the State List and criminal law in the Concurrent List.
For a short note on doctrines, define the doctrine, give the test, state its effect and add one line on how it differs from a related doctrine.
In a long answer on relations, cover legislative, administrative and financial sections even if briefly, so the answer looks complete.
Practise a problem on validity of a State law in the exam style: facts, list, doctrine, conclusion.

Practice questions from Constitution of India

Centre-State Relations and Federal Structure in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

CMA FoundationUnion, State and Concurrent Lists

Centre-State Relations and Federal Structure: frequently asked questions

What are the Union, State and Concurrent Lists?

They are the three lists in the Seventh Schedule that divide legislative subjects. Parliament alone legislates on the Union List and States on the State List. Both can legislate on the Concurrent List, and the Union law prevails in a conflict.

What is the doctrine of pith and substance?

It is a test to decide which list a law really falls under. If the true nature of the law is within the enacting legislature's competence, it is valid even if it incidentally touches a subject in another list.

What is colourable legislation?

It is a law made by a legislature that, in form, appears to act within its powers but in substance does something it cannot do directly. Such a law is void for lack of competence.

Who has residuary powers in India?

Parliament has residuary powers under Article 248. This includes the power to make laws on any matter not listed in the Concurrent or State Lists.