Polity

Centre-State Relations

Centre-State Relations for CGPSC Prelims and Mains: legislative, administrative and financial relations, Finance Commission, GST Council, Sarkaria and Punchhi.

Chapter Overview

Centre-State relations (केंद्र-राज्य संबंध) describe how the Constitution divides law-making, executive and financial power between the Union and the states. They sit in Part XI (Articles 245–263) and Part XII (Articles 264–293), with the Seventh Schedule as the master list. This is where India’s “quasi-federal” character is decided, and where today’s live disputes play out: Governors and assent to Bills, central agencies, GST, Finance Commission shares and river waters. For a Chhattisgarh aspirant the chapter has a strong local angle: the Mahanadi tribunal, the Central Zonal Council, the state’s share in central taxes, and the 2024 mineral royalty judgment.

What You’ll Learn

By the end of this chapter, you will be able to:

  • Explain the three lists of the Seventh Schedule, residuary power (Art 248) and how Art 254 resolves conflicts
  • List the five situations in which Parliament can legislate on State subjects (Arts 249, 250, 252, 253, 356)
  • Explain the Centre’s power to direct states (Arts 256, 257, 365) and the cooperation provisions (Arts 258, 258A, 261, 262, 263)
  • Describe the Inter-State Council, Zonal Councils and All-India Services
  • Explain how tax revenue is shared (Arts 268–271), the role of the Finance Commission (15th and 16th) and the GST Council
  • Compare the ARC, Rajamannar, Sarkaria and Punchhi recommendations and the S.R. Bommai judgment
  • Write balanced Mains answers on cooperative federalism with a Chhattisgarh angle

Prerequisites


Learning Path

Follow the topics in this order:

graph TD
    A["1. Legislative Relations
Arts 245–255, three lists,
Arts 249–254, Governor's assent"] --> B["2. Administrative Relations
Arts 256–263, ISC,
Zonal Councils, AIS"] B --> C["3. Financial Relations
Arts 264–293, Finance Commission,
GST Council, royalty ruling"] C --> D["4. Commissions
ARC, Rajamannar, Sarkaria,
Punchhi, Bommai"] D --> E["5. Quick Revision
One-page sheet"] E --> F["Next chapter:
Local Government in India"]

Topics in This Chapter

#TopicWhat it covers
1Legislative Relations (Articles 245–255)Territorial extent, Seventh Schedule, 42nd Amendment, residuary power, Art 246A (GST), Parliament in the State field, Art 254, Arts 200 and 201, the 2025 assent rulings
2Administrative Relations (Articles 256–263)Directions to states, Art 365, mutual delegation, full faith and credit, water disputes (Mahanadi), Inter-State Council, All-India Services, Zonal Councils
3Financial Relations (Articles 264–293)Tax powers, Arts 268–271, grants, Finance Commission (15th and 16th), GST Council, borrowing, the 2024 mineral royalty judgment
4Commissions on Centre-State RelationsARC 1966, Rajamannar, Anandpur Sahib, West Bengal Memorandum, Sarkaria, Punchhi, Bommai and the nature of Indian federalism
—Quick RevisionEvery article, body, number and case on one page

Where It Is Asked

PaperWhat to expect
Prelims P-I (Part 1, India GS)Article-number questions (249, 252, 254, 263, 275, 280, 293), list placement of subjects, Finance Commission chairs and shares, GST Council voting, commission chairs and years. Statement-based and match-the-following formats are common
Mains P-III (GS-I), Constitution and Public AdministrationShort answers (Inter-State Council, Art 249, localised emergency, Finance Commission functions) and long answers (is India quasi-federal? the Governor’s role; fiscal federalism and GST; Sarkaria vs Punchhi)
Exam focus
  • High-yield: Art 249 (Rajya Sabha, two-thirds present and voting); 42nd Amendment’s five subjects; Art 254(2); ISC chaired by PM vs Zonal Councils chaired by Home Minister; Arts 268–271; 41% devolution (15th and 16th FCs); Sarkaria 247 vs Punchhi 273.
  • Common mistakes: putting police or agriculture in the Concurrent List; saying residuary powers lie with states; calling Zonal Councils constitutional; assuming GST Council decisions are binding.
  • Chhattisgarh angle for Mains: Central Zonal Council membership; the Mahanadi Water Disputes Tribunal (2018); the 2020 Art 131 suit against the NIA Act; 3.407% share under the 15th FC; Fifth Schedule and Art 275 grants; no President’s Rule since 2000 (as of 2026).

Quick Reference: the Chapter at a Glance

Article(s)SubjectKey point
245–246Territorial and subject-wise divisionThree lists: originally 97 / 66 / 47 entries
246AGSTSimultaneous power (101st Amendment, 2016)
248Residuary powerWith Parliament
249 / 250 / 252 / 253Parliament in the State fieldRajya Sabha resolution / Emergency / states’ request / treaties
254RepugnancyCentral law prevails; 254(2) exception with President’s assent
256–257, 365Directions to statesNon-compliance can lead to Art 356
258 / 258ADelegationPresident → state / Governor → Centre
262 / 263Water disputes / Inter-State CouncilTribunals; ISC set up 1990
268–271Tax sharingStamp, Sale, Share, Surcharge
275 / 282GrantsStatutory / discretionary
279AGST CouncilFM chairs; Centre 1/3 vote
280Finance Commission16th FC (Panagariya): 41% for 2026–31
293State borrowingOnly within India

Related chapters: Union Executive · Judiciary · Constitutional Bodies · Public Finance · Chhattisgarh: State Formation and Administration


Start Learning

Begin with the first topic:

→ Legislative Relations (Articles 245–255)