Centre-State Legislative Relations in India refer to the constitutional relationship between the central government and the governments of the states in India. It determines the division of powers and responsibilities between the central and state governments and outlines the areas in which they can exercise their respective powers. The centre-state relations in India have been dynamic over the years and have undergone several changes, with the centre having more powers in certain areas, while the states have greater autonomy in others. These relationships play a crucial role in ensuring the smooth functioning of the Indian federal system and are an important aspect of India’s governance structure.

The Centre-state relations can be studied under three heads namely – Legislative Relations, Administrative relations, and  Financial relations.

Legislative Relations between Centre and States

Legislative relations between centre and state governments in India refer to the allocation and distribution of legislative powers between the Union government and the state governments. The legislative powers are distributed between the Union and states as per the provisions of the seventh schedule of the constitution which mentions three lists- Union List, State List and Concurrent List. 

Articles 245 to 255 in Part XI of the Constitution pertain to the legislative relationship between the Centre and the states.

Territorial Extent of Legislation in Centre-State Relations

• Territorial extent of Parliamentary legislation: Parliament holds the authority to legislate for the entirety of India’s territory, encompassing states, union territories, and areas under Indian jurisdiction. Only Parliament has the authority to formulate “extraterritorial laws” applicable to Indian citizens and their assets outside the country.
• Territorial extent of state legislation: State legislatures have the authority to enact laws that apply to the entire state or specific regions within it. Laws established by the state do not extend beyond its borders unless there is a significant connection between the state and the subject matter.
• Areas where laws made by the Parliament are not applicable:
  • Union territories: Regulations for the peace, progress and good government of the four Union Territories– Andaman and Nicobar Islands, Lakshadweep, Dadra and Nagar Haveli and  Daman and Diu and Ladakh. Such regulations are issued by the President of India and carry the same weight as legislation enacted by Parliament.
  • Scheduled areas: The Governor may direct that an act of the Parliament does not apply to a scheduled area in the state or apply with certain modifications and exceptions.
  • Directions of Governor: Governor of Assam may likewise direct that an act of Parliament does not apply or apply with some modifications. The President also holds this power concerning tribal areas in Meghalaya, Tripura, and Mizoram.

Legislative Division in India: Centre-State Relations and the Seventh Schedule

According to Schedule VII, the Constitution establishes a union list (comprising 98 subjects, originally 97), a state list (containing 59 subjects, originally 66), and a concurrent list (with 52 subjects, initially 47 subjects). 

• Union list: Parliament possesses exclusive authority over the union list. It includes subjects of national importance and areas which require uniformity throughout the country. For example Defence, Banking, currency, atomic energy, foreign affairs, census etc.
• State list: Regarding the state list, the state legislature generally holds exclusive rights to legislate on matters listed therein. This includes subjects significant to regional and local interests and those allowing for diversity.
• Concurrent list: he concurrent list allows both the Centre and states to legislate on shared subjects; however, in the event of a conflict, central legislation takes precedence unless a similar state law has been reserved for presidential review and has received the President’s approval.  It includes matters on which uniformity of legislation throughout the country is desirable but not essential For example- criminal law and procedure, divorce, electricity, labour welfare etc.
• Residuary subjects:  For subjects not covered in any of the lists, Parliament has sole authority to create laws on these residuary subjects. The higher judiciary is the final authority to decide whether a particular matter falls under residuary power or not. This power also includes the power to make a law imposing a tax not mentioned in any of the lists.
• Goods and Services tax: Parliament and state legislature, have power to make laws with respect to goods and services tax imposed by the Union or by such State. Further, Parliament has exclusive power to make laws with respect to goods and services tax where the supply of goods, or of services, or both takes place due to inter-State trade or commerce.

Comparison of three lists under Seventh Schedule

The Constitution clearly establishes the supremacy of the Union list over the State List and the Concurrent List, while the Concurrent List has superiority over the State List.

Conflict Resolution in the Concurrent List

When there is a conflict between central law and state law regarding a subject in the Concurrent List, central law takes priority. However, if the state law has been set aside for the President’s review and has been approved by him, then that state law will prevail within that state. Nevertheless, Parliament can still override that law by subsequently enacting legislation on the same issue.

In the United States, only the powers of the federal government are detailed in the Constitution, with all other powers reserved for the states. Conversely, in Canada, two lists are specified: one for the Centre and one for the states, with residuary powers allocated to the Centre. This framework for enumerating legislative subjects was derived from the Government of India Act, 1935, except for the clause that assigned residuary powers to the Viceroy of India.