Polity Centre-State Relations

Centre-State Relations — Quick Revision

One-page CGPSC quick revision for Centre-State Relations: articles, lists, Finance Commission, GST Council, Sarkaria and Punchhi in tables.

5 min read Updated Oct 2026 #quick revision#cgpsc#centre-state relations

Legislative, administrative and financial relations and the commissions on one page. For explanations, go back to the chapter.

How to use this sheet
Scan it top to bottom in the week before Prelims. Bold entries are the facts examiners return to most often.

Legislative Relations (Arts 245–255)

Article / itemKey fact
245Territorial extent; Parliament’s laws can operate extra-territorially
246Three lists in the Seventh Schedule: originally 97 (Union) / 66 (State) / 47 (Concurrent); Concurrent now 52
246AGST: Parliament and states both (101st Amendment, 2016); IGST only by Parliament
248Residuary power with Parliament (Entry 97, List I) — Canadian model
42nd Amendment (1976)Five subjects to Concurrent: education, forests, weights and measures, wild animals and birds, administration of justice
249Rajya Sabha, two-thirds of members present and voting, national interest; 1 year, renewable; law lapses 6 months after
250National Emergency; law lapses 6 months after Emergency ends
252Two or more states request; only Parliament can amend or repeal
253International agreements
254Central law prevails on Concurrent subjects; 254(2) State law with President’s assent prevails in that state
200 / 201Governor’s options / President’s options on reserved Bills
304(b)President’s previous sanction for trade-restricting State Bills
Assent rulingsTN v. Governor (8 Apr 2025); Presidential Reference opinion (20 Nov 2025): no court-fixed timelines, no deemed assent, no indefinite delay
Pith and substanceState of Bombay v. F.N. Balsara (1951)

Administrative Relations (Arts 256–263)

Article / bodyKey fact
256 / 257States must comply with Union laws; must not impede the Union; communications and railways
258 / 258APresident → state (state consent) / Governor → Centre (Centre consent; 7th Amendment, 1956)
261Full faith and credit
262Water disputes; Inter-State River Water Disputes Act and River Boards Act, 1956
263Inter-State Council: set up 1990; PM chairs; Standing Committee under Home Minister; 11th meeting 16 July 2016
312All-India Services; new one by Rajya Sabha resolution; IFoS 1966
315 / 317PSCs; Joint PSC by Parliament; State PSC members removed only by President
339(2), Fifth ScheduleUnion directions on ST welfare and Scheduled Areas
353(a)Directions to any state on any matter in National Emergency
355 / 365Union’s duty to protect states / non-compliance can lead to Art 356
Zonal CouncilsStatutory (SR Act, 1956); five; Union Home Minister chairs
Central Zonal CouncilChhattisgarh, MP, UP, Uttarakhand; 25th meeting Varanasi, 24 June 2025
Mahanadi tribunal12 March 2018; Odisha vs Chhattisgarh; first chair Justice A.M. Khanwilkar
NIA Act suitChhattisgarh, Art 131, January 2020 (“police” is State List Entry 2)

Financial Relations (Arts 264–293)

Article / bodyKey fact
265No tax without authority of law
268Stamp duties: Union levies; states collect and keep
269 / 269AInter-state sale tax assigned to states / IGST shared on GST Council advice
270Divisible pool (80th Amendment, 2000); cesses and surcharges excluded
271Surcharges: Union only
275Statutory grants; ST welfare and Scheduled Areas
282Discretionary grants (Centrally Sponsored Schemes)
276Profession tax maximum ₹2,500 a year
279AGST Council: FM chairs; Centre 1/3, states 2/3; decisions by 3/4; quorum 1/2
280Finance Commission: chairman + 4; every 5 years
292 / 293Union borrowing / state borrows only within India; Centre’s consent if indebted
360Financial Emergency: never proclaimed (as of 2026)
Finance CommissionChairmanPeriodShare
1stK.C. Neogy1952–57—
13thVijay Kelkar2010–1532%
14thY.V. Reddy2015–2042%
15thN.K. Singh2021–2641%
16thArvind Panagariya2026–3141%
FactDetail
16th FC criteriaIncome distance 42.5, population (2011) 17.5, demographic performance 10, area 10, forest 10, contribution to GDP 10 (new)
16th FC datesConstituted 31 Dec 2023; report to President 17 Nov 2025; tabled 1 Feb 2026
Chhattisgarh’s share3.407% under the 15th FC (2021–26)
GSTFrom 1 July 2017; compensation ended 30 June 2022
Mohit Minerals (2022)GST Council recommendations are not binding
MADA v. SAIL (25 July 2024)Nine judges, 8:1: royalty is not a tax; states can tax mineral rights; arrears from 1 April 2005 in 12 years from 1 April 2026

Commissions and Cases

Body / caseYearRemember
ARC1966 (report 1969)Morarji Desai → K. Hanumanthaiya; 22 recommendations
Rajamannar Committee1969 (report 1971)Tamil Nadu; delete Arts 356, 357, 365; abolish AIS
Anandpur Sahib Resolution1973Centre limited to defence, foreign affairs, communications, currency
West Bengal Memorandum1977“Federal” for “union”; 75% revenue to states
Sarkaria Commission1983–88R.S. Sarkaria, B. Sivaraman, S.R. Sen; 247 recommendations; Inter-Governmental Council; Art 356 as last resort
S.R. Bommai1994Art 356 reviewable; floor test; federalism basic structure
Punchhi Commission2007–10M.M. Punchhi; 273 recommendations; localised emergency; Governor’s fixed tenure
B.P. Singhal2010No arbitrary removal of Governors
TN high-level committee2025Justice Kurian Joseph; state autonomy
Chhattisgarh2000–2026Never under President’s Rule (as of 2026)

Don’t Confuse

ThisvsThat
Inter-State Council — Art 263, PM chairsvsZonal Councils — statutory, Home Minister chairs
Art 249 — Rajya Sabha resolution for State List lawsvsArt 312 — Rajya Sabha resolution for a new All-India Service
Art 252 law — only Parliament can amendvsArt 357 law — State legislature can later amend
Art 268 — states keepvsArt 271 — Union keeps
Art 275 — statutory grantsvsArt 282 — discretionary grants
14th FC — 42%vs15th and 16th FC — 41%
Sarkaria — 247, Inter-Governmental CouncilvsPunchhi — 273, localised emergency
Rajamannar — Tamil Nadu, 1969vsSarkaria / Punchhi — Union, 1983 / 2007
Favourite MCQ trap
“An Article 249 resolution must be passed by both Houses of Parliament.” Wrong. Only the Rajya Sabha passes it, by two-thirds of members present and voting. The same Rajya Sabha-only rule applies to creating a new All-India Service under Article 312.
Second favourite trap
“Residuary powers of taxation should be transferred to the states — Sarkaria Commission.” Wrong. Sarkaria wanted residuary taxation to stay with Parliament; only non-tax residuary powers were to move to the Concurrent List.
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