BPSC · Polity

Federalism, Centre-State and Inter-State Relations

65 min read · Updated 5 Oct 2026

1. BPSC demand and study route

BPSC commonly tests the Seventh Schedule, residuary power, exceptional parliamentary power over the State List, repugnancy, administrative directions, All India Services, GST Council, Inter-State Council and Zonal Councils. Questions often replace one Article with another or confuse a constitutional body with a statutory forum.

Use four steps: subject list → ordinary law-maker → exceptional route → conflict rule. Then connect the topic to Bihar: the State exercises State List powers, participates in shared institutions, receives constitutionally structured transfers, and belongs to the Eastern Zonal Council.

2. What kind of federation is India?

Article 1 says, “India, that is Bharat, shall be a Union of States.” The Constitution does not use “federal” as its formal label. Yet it establishes two constitutional levels of government, divides legislative and financial powers, makes the Constitution supreme, provides an independent judiciary and creates a bicameral Parliament. These are federal features.

At the same time, Parliament has residuary power, can legislate on the State List through specified constitutional routes, can alter State areas or boundaries under Articles 3–4, and gains wider power during Emergencies. Single citizenship, integrated judicial organisation and All India Services also strengthen national integration. Therefore, the safest exam formulation is: India has a federal constitutional structure with significant unitary or centralising features.

3. Federal and centralising features compared

Federal or power-sharing featureIntegrating or centralising feature
Union and State governments derive authority from the Constitution.Article 1 calls India a Union of States; States have no constitutional right to secede.
Seventh Schedule distributes legislative subjects.Residuary legislative power belongs to Parliament under Article 248 and Union List Entry 97.
Written and supreme Constitution controls both levels.Parliament may legislate on State subjects under Articles 249, 250, 252 and 253.
Independent courts decide constitutional competence and federal disputes.Emergency provisions can enlarge Union legislative, executive or financial control.
Rajya Sabha gives States representation at the Union level.Representation is not equal for every State; it broadly varies with population.
Revenue powers and transfers are constitutionally structured.Union possesses broader tax bases and constitutional mechanisms for directions and grants.
States have elected governments and legislatures.Single citizenship, integrated judiciary and All India Services connect administrations.

4. Centre-State relations: article map

AreaMain provisionsCore question
Legislative relationsArticles 245–255; Seventh ScheduleWhich legislature has competence, and what happens on conflict?
Administrative relationsArticles 256–263How are laws implemented, functions entrusted and common issues coordinated?
Financial relationsArticles 268–293; Article 280Who levies, collects, distributes, grants or borrows?
GST federalismArticles 246A, 269A and 279AHow do Union and States share power over a common tax?
Inter-State tradeArticles 301–307How is economic unity balanced with permitted restrictions?
All India ServicesArticle 312How can a shared service be created in the national interest?
Federal adjudicationArticles 131 and 262Which dispute goes to Supreme Court and which may follow a special water mechanism?

5. Seventh Schedule: the three lists

ListNormal legislative authorityIllustrative subjectsExam caution
List I — Union ListParliament has exclusive power.Defence, foreign affairs, citizenship, railways, currency, inter-State trade, specified Union taxes.Union List has priority where Article 246 fields overlap.
List II — State ListState Legislature has exclusive power, subject to constitutional exceptions.Public order, police, public health, agriculture, local government, land, State taxes listed there.“State List” does not mean Parliament can never legislate on it.
List III — Concurrent ListParliament and State Legislatures may both legislate.Criminal law and procedure, marriage and divorce, forests, education, labour welfare.Conflict is governed by Article 254, not by automatic invalidity of every State law.

6. GST created a special shared field

Article 246A begins with a non-obstante formula and gives Parliament and State Legislatures power to make GST laws. Parliament alone has power over GST where the supply takes place in the course of inter-State trade or commerce. Article 269A provides for Union levy and collection of GST on inter-State supplies and its apportionment between Union and States.

This is not simply another entry in the three lists. It is a special constitutional arrangement for shared tax legislation. The GST Council under Article 279A coordinates recommendations on rates, exemptions, model laws, thresholds and other listed matters.

7. When may Parliament legislate on a State List matter?

ArticleTriggerDuration or reachSpecial point
249Rajya Sabha resolves, by at least two-thirds of members present and voting, that legislation is necessary in national interest.Resolution operates for a stated period not exceeding one year; it may be renewed for periods not exceeding one year each. The resulting law ceases to have effect six months after the resolution ends, except past acts.Rajya Sabha acts as the federal chamber; no National Emergency is required.
250A Proclamation of Emergency is in operation.Parliamentary law ceases six months after the Emergency ends, except past acts.State legislative power is not erased; inconsistent Union law prevails while operative under Article 251.
252Legislatures of two or more States pass resolutions requesting parliamentary law.Applies initially to requesting States; another State may adopt it by legislative resolution later.For those States, the law may be amended or repealed only by Parliament in like manner, not by their Legislatures.
253Implementation of a treaty, agreement, convention or international decision.Parliament may legislate for all or any part of India.No prior State resolutions are constitutionally required, even if the subject ordinarily falls in the State List.

9. Administrative relations: Articles 256–258A

ArticleRulePrelims distinction
256State executive power must ensure compliance with parliamentary laws and existing laws applicable in the State; Union may give necessary directions.Compliance with Union law.
257State executive power must not impede Union executive power; Union may issue directions, including specified directions concerning nationally/militarily important communications and railway protection.Non-impediment and specified Union functions.
258President may, with consent of the State Government, entrust Union executive functions to that Government or its officers, conditionally or unconditionally.Union → State; President + State consent.
258AGovernor may, with consent of Government of India, entrust State executive functions to Union Government or its officers.State → Union; Governor + Union consent.

10. All India Services: shared administration

Under Article 312, Rajya Sabha may declare by a resolution supported by at least two-thirds of members present and voting that it is necessary or expedient in the national interest to create one or more All India Services common to Union and States. Parliament may then provide for their creation and conditions of service. The Indian Administrative Service and Indian Police Service are constitutionally deemed to be services created by Parliament under this Article.

All India Services illustrate cooperative administration: officers serve under both Union and State structures, but recruitment and service arrangements preserve a national cadre system. Do not confuse Article 312 with Article 249: both use a Rajya Sabha two-thirds present-and-voting resolution, but one concerns services and the other State List legislation.

11. Financial relations: a foundation map

ProvisionFunctionMemory cue
Articles 268–270Constitutional channels for Union levy/collection, State assignment or Union-State distribution of specified taxes and duties.Levy, collect, assign, distribute are different verbs.
Article 269AInter-State GST is levied and collected by Union and apportioned between Union and States.Inter-State supply.
Article 271Parliament may levy a surcharge for Union purposes on specified taxes and duties, subject to the constitutional text.Surcharge proceeds go to Union.
Article 275Parliament provides grants-in-aid of revenues of States in need of assistance, with special provisions in the Article.Constitutional grants.
Article 280President constitutes Finance Commission to recommend tax distribution, grants principles and other referred fiscal matters.Vertical and horizontal devolution framework.
Article 282Union or a State may make grants for any public purpose even outside its ordinary legislative field.Discretionary public-purpose grants.
Articles 292–293Union and State borrowing; a State needs Union consent to raise a loan where specified Union debt/guarantee remains outstanding.State borrowing may carry a consent condition.

12. GST Council: composition and voting

ElementConstitutional rule
ChairpersonUnion Finance Minister.
Other Union memberUnion Minister of State in charge of Revenue or Finance.
State representationMinister in charge of Finance or Taxation, or another Minister nominated by each State Government.
QuorumOne-half of the total number of members.
Decision thresholdAt least three-fourths of weighted votes of members present and voting.
Vote weightUnion Government: one-third of total votes cast; all State Governments together: two-thirds.
NatureArticle 279A repeatedly describes the Council's output as recommendations.

13. Inter-State relations: constitutional mechanisms

ArticleMechanismNature
131Supreme Court has original jurisdiction in specified legal disputes between Union and one or more States, or between States, subject to constitutional limits.Judicial adjudication of a dispute involving a legal right.
261Full faith and credit throughout India to public acts, records and judicial proceedings; final civil judgments may be executed according to law anywhere in India.Legal continuity across State borders.
262Parliament may provide adjudication of disputes concerning waters of inter-State rivers/valleys and may exclude Supreme Court and other courts.Special water-dispute route.
263President may establish a Council if public interest would be served, and define its duties, organisation and procedure.Inquiry/advice, discussion and recommendations as assigned.

14. Inter-State Council, Zonal Councils and North Eastern Council

ForumSourceCharacter and purposeBihar link
Inter-State CouncilArticle 263; established by Presidential Order dated 28 May 1990.Constitutional, recommendatory and consensus-oriented forum chaired by Prime Minister. The 1990 Council was assigned common-interest discussion and coordination functions; MHA notes it was not assigned Article 263(a)'s dispute-inquiry duty.Bihar Chief Minister participates as a State Chief Minister.
Five Zonal CouncilsPart III, States Reorganisation Act, 1956.Statutory and advisory regional councils chaired by Union Home Minister; discuss Centre-State and inter-State issues.Bihar is in Eastern Zonal Council with Jharkhand, Odisha, Sikkim and West Bengal on the current MHA composition page.
North Eastern CouncilNorth-Eastern Council Act, 1971; established in 1972.Separate statutory regional body for the North-Eastern area; it is not a “sixth Zonal Council”.Bihar is not a member.

15. Inter-State Council: Article 263 text versus the actual Council

Article 263 permits the President to create a Council charged with one or more of three kinds of duties: (a) inquiring into and advising upon disputes between States; (b) investigating and discussing common-interest subjects; and (c) recommending better coordination of policy and action. The President defines its actual duties, organisation and procedure.

The permanent Inter-State Council established in 1990 is chaired by the Prime Minister and includes Chief Ministers and other specified Union/territorial representatives under its order. It is a forum of discussion and recommendation, not a court. The constitutional menu in Article 263 is broader than the duties actually assigned to the 1990 Council—an important statement-based question trap.

16. Zonal Councils: cooperative federalism at regional scale

The five Zonal Councils—Northern, Central, Eastern, Western and Southern—were created by the States Reorganisation Act, 1956. They provide a common meeting ground for States in a region and the Union to discuss boundary, linguistic-minority, transport, economic planning, security and other shared concerns. Their advice works through consultation, not judicial compulsion.

The Union Home Minister is Chairperson of each Zonal Council. The Chief Minister of each State in the zone acts by rotation as Vice-Chairperson for one year. Never write that Article 263 itself created the Zonal Councils; their direct legal source is a parliamentary statute.

17. Freedom of inter-State trade and permitted restrictions

ArticleRuleExam cue
301Subject to other provisions of Part XIII, trade, commerce and intercourse throughout India shall be free.Freedom is textually qualified, not absolute.
302Parliament may impose restrictions in public interest.Parliamentary restriction.
303Union or State Legislature generally cannot give preference to one State over another or discriminate between States; Parliament has a scarcity-based exception.Economic non-discrimination.
304(a)A State may tax goods imported from other States/Union territories if similar local goods bear the same tax and there is no discrimination.Equal tax treatment.
304(b)A State Legislature may impose reasonable public-interest restrictions, but the Bill/amendment requires President's previous sanction.Reasonableness + public interest + previous sanction.

18. Emergencies and the federal balance

19. Bihar relevance

21. Prelims traps

22. Official PYQ status

No question is reproduced as an official BPSC PYQ because its complete wording and options were not verified from an official question booklet during this preparation. The following are original BPSC-style practice questions.

24. BPSC-style practice: exactly 20 MCQs