Constitutional Law

Legislative Relations between Union and States

Understand how India divides law-making power through Articles 245 to 255, the Seventh Schedule, residuary power and special parliamentary powers.

Written and reviewed by Advocate Aditya Sharma18 min read
Articles 245 to 255Articles 246A and 248Seventh Schedule

The short answer

Legislative competence depends on territory, the subject lists and special constitutional rules that sometimes allow Parliament to enter the State field.

The basic distribution of legislative power

A competence problem should be solved in order: territory, subject matter, special provision and conflict.

Territorial reach

Parliament may legislate for all or any part of India, while a State Legislature ordinarily legislates for that State. A parliamentary law is not invalid merely because it also operates outside India.

The three lists

List I gives Parliament exclusive fields, List II gives States their principal fields and List III permits both to legislate. Article 246 gives Union power priority where entries cannot be reconciled.

GST and residuary subjects

Article 246A separately distributes GST power. Article 248 and Entry 97 of List I place unenumerated subjects and residuary taxation with Parliament.

Entries describe fields, not rigid boxes

Legislative entries receive a broad interpretation. Courts examine the whole law and its true character because practical governance inevitably creates some overlap.

When Parliament may enter the State field

State List power is substantial, but the Constitution creates carefully defined national routes.

National interest

Under Article 249, Rajya Sabha may pass the required resolution allowing Parliament to legislate on a State subject in the national interest for the constitutionally limited period.

Emergency and State consent

Article 250 operates during a Proclamation of Emergency. Article 252 allows Parliament to legislate for two or more consenting States, and other States may later adopt that law.

International obligations

Article 253 allows Parliament to implement treaties, international agreements and conference decisions even where the subject would otherwise fall in the State List.

Existing law and repugnancy

Articles 251 and 254 determine the effect of conflicts. The precise result depends on which special power was used and whether both laws concern a Concurrent List matter.

The constitutional map of legislative power

Articles 245, 246, 246A and 248 must be read with the Seventh Schedule to identify both territorial and subject-matter competence.

Article 245

Parliament may legislate for all or part of India and a State Legislature for its State. Parliamentary law is not invalid merely because it operates extra-territorially, while State law ordinarily needs a real territorial connection.

Three legislative lists

List I assigns Union fields, List II assigns State fields and List III permits concurrent legislation. The entries describe fields of lawmaking and receive a broad, practical construction rather than the narrow reading of statutory definitions.

GST power

Article 246A creates a special concurrent power for GST, with Parliament holding exclusive power over GST on inter-State supplies. It must be addressed directly instead of forced into the older List structure.

Residuary power

Article 248 and Entry 97 of List I place unenumerated subjects and unlisted taxes with Parliament, subject to Article 246A. A court first checks whether the matter already belongs to List II or List III.

When Parliament may legislate on a State field

State List exclusivity has carefully defined constitutional exceptions, each with a different trigger and duration.

National interest under Article 249

Rajya Sabha may pass the prescribed two-thirds present-and-voting resolution authorising parliamentary legislation on a specified State matter for a limited renewable period.

Emergency under Article 250

During a national emergency Parliament may legislate on State List matters. Such law has temporary priority and ordinarily ceases to operate six months after the emergency ends, except for completed consequences.

State consent under Article 252

Two or more State Legislatures may request parliamentary legislation for themselves, and other States may later adopt it. The participating States cannot independently amend or repeal that parliamentary law.

Treaties and constitutional breakdown

Article 253 supports parliamentary implementation of international obligations, while Article 356 allows Parliament to exercise the State Legislature's lawmaking power during a valid proclamation of President's Rule.

How a court tests legislative competence

The statute is examined in substance, with overlapping entries reconciled before invalidity is considered.

Begin with the enactment's true subject, legal operation and practical effect. Match that character to the broadest plausible entry, then read competing entries harmoniously. Incidental impact on another list does not invalidate a law whose pith and substance remains within the enacting legislature's field.

Tax entries are distinct constitutional fields and cannot automatically be inferred from a general regulatory entry. The measure of a tax may use facts connected to another field without changing the tax's legal character. Kesoram Industries illustrates why the nature, subject and measure of a levy must not be confused.

If no enumerated field resolves the matter, residuary power may become relevant. The 2025 Supreme Court decisions continue to emphasise that Articles 245 and 246 confer power while the Seventh Schedule entries demarcate fields of legislation.

A reliable answer structure

A competence answer should move from source of power to classification, overlap and legal consequence.

State the source

Identify the enacting legislature, territorial reach, governing article and exact List entry or special provision relied upon.

Characterise the law

Use purpose, rights and liabilities, operative provisions and practical effect to determine pith and substance. The Act's title is relevant but never conclusive.

Handle overlap

Apply broad entry interpretation, harmonious construction and incidental encroachment. Use Article 254 only if both laws validly occupy a Concurrent List field and are actually inconsistent.

Give a precise remedy

Explain whether the law is wholly beyond competence, severable in part, temporarily overridden or valid subject to a narrower interpretation.

Worked problem: a State law with national effects

Suppose a State regulates a digital marketplace, while Parliament has enacted a national consumer and data framework.

Territory

Identify users, sellers, transactions and harmful effects within the State. Those facts may establish territorial nexus, but nexus alone does not establish subject-matter competence.

True character

Decide whether the State law substantially regulates trade within the State, markets, contracts, public order or another field. Then identify the competing Union or Concurrent entry rather than relying on the word digital.

Conflict

Ask whether simultaneous obedience is possible and whether parliamentary law intended a complete national code. Article 254 becomes central only after concurrent competence is established.

Result

A court may uphold complementary local rules, read down overbroad operation, sever the incompetent part or hold the State provision void to the extent of a proved constitutional conflict.

Leading cases and what they establish

Read each authority for the proposition it proves, the legal question it answers and the reasoning that supports the result.

Union of India v. H.S. Dhillon

(1971) 2 SCC 779

Facts: The Wealth Tax Act was extended to agricultural land, and the levy was challenged on the ground that Parliament lacked an identified field of legislative competence.

Legal question: How should a court test Parliament's claim to residuary legislative power under Article 248 and Entry 97 of List I?

Held: Parliamentary competence over a residuary matter can be established by showing that the subject is not contained in List II or List III.

Reasoning: For exclusive parliamentary competence, the central inquiry was whether the subject fell within List II. If it did not belong to List II or List III, Parliament could rely on its residuary field.

Why it matters: Use it for Article 248, Entry 97 and the correct method for testing residuary power.

State of West Bengal v. Kesoram Industries Ltd.

(2004) 10 SCC 201

Facts: Several State levies connected with land, minerals and industrial activity were challenged as taxes outside the States' legislative fields.

Legal question: How should legislative entries and the true nature of a fiscal levy be identified when constitutional fields appear to overlap?

Held: Legislative entries must be read broadly and harmoniously, while the nature of a levy is determined from its real subject and constitutional field.

Reasoning: Entries receive a broad and harmonious construction. The court examines the substance, measure and legal character of the levy instead of deciding competence from its label alone.

Why it matters: Use it for interpretation of entries, legislative competence and the distinction between a tax and a fee.

Read the judgment

Using this topic in a legal answer

A clear answer sequence

  1. Identify the territory and the legislature that enacted the law.
  2. Locate the subject in the Seventh Schedule or Article 246A.
  3. Apply pith and substance if entries appear to overlap.
  4. Check Articles 248 to 253 for residuary or special parliamentary power.
  5. Address repugnancy only after both laws are shown to be competent.

Points that are often confused

  • Treating every overlap as a complete loss of competence.
  • Assuming residuary power belongs to the States.
  • Using Article 254 for a direct conflict between Union List and State List entries.
Open the revision and self-check sheet

Rules to retain

  • Article 245 concerns territorial reach.
  • Article 246 works with the three legislative lists.
  • Article 246A separately deals with GST.
  • Residuary power belongs to Parliament.
  • Articles 249 to 253 create special parliamentary routes.

Questions to test understanding

  1. Where does Indian residuary legislative power lie?
  2. How does Article 252 operate?
  3. Why must competence be decided before repugnancy?

Questions students ask

Can Parliament ever legislate on a State List subject?

Yes. The Constitution permits this through specific routes including Articles 249, 250, 252 and 253. Each route has its own trigger, scope and duration.

Does an incidental effect on another list invalidate a law?

No. If the law in its true nature falls within the enacting legislature's field, incidental encroachment does not ordinarily destroy competence.

Are Seventh Schedule entries the source of legislative power?

The constitutional power is traced to provisions such as Articles 245 and 246. The entries demarcate legislative fields and help identify which legislature may exercise that power.

Can Parliament always legislate on a State List topic?

No. It needs a constitutional route such as Articles 249, 250, 252, 253 or 356, or another applicable grant of power. Each route has its own conditions and consequences.

Does any overlap with List I invalidate a State law?

No. If the law in pith and substance belongs to a State field, incidental contact with a Union field may be permissible. Direct conflict and occupied-field questions require separate analysis.

Primary sources and further reading

This article is written for legal education. Verify the governing provision, applicable amendments and complete judgment before relying on a proposition in practice.