Centre-State Relations MCQ & Notes — Legislative, Administrative and Financial Relations (Articles 245-263) for UPSC, SSC

Centre-State Relations MCQ & Notes — Legislative, Administrative and Financial Relations (Articles 245-263) for UPSC, SSC

Centre-State Relations, covered mainly in Part XI (Articles 245-263) and Part XII (Articles 268-293) of the Constitution, is one of the most frequently tested Indian Polity topics for UPSC Prelims, SSC CGL, SSC CHSL and State PSC exams. This guide breaks the topic into legislative, administrative and financial relations, lists the key articles and commissions, and closes with 10 practice MCQs with answers.

Why This Topic Matters for Competitive Exams

Centre-State Relations sits at the intersection of the federal structure and is a favourite for "match the relation type to its Articles" questions, along with questions on the five routes through which Parliament can legislate on a State List subject, the Inter-State Council, and the commissions (Sarkaria, Punchhi) that reviewed federal relations.

Legislative Relations (Articles 245-255)

• Article 245: Parliament may make laws for the whole or any part of India; a State Legislature may make laws for the whole or any part of that state. Only Parliament's laws can have extra-territorial operation.
• Article 246: Divides legislative subjects via the Seventh Schedule into the Union List (Parliament's exclusive domain), the State List (normally the state's exclusive domain) and the Concurrent List (both can legislate).
• Article 254: In case of a conflict between a Union law and a State law on a Concurrent List subject, the Union law prevails, unless the State law has received Presidential assent for that specific case.
• Parliament's five routes onto the State List: (1) Article 249 — Rajya Sabha passes a resolution by a two-thirds majority declaring a State List matter to be of national importance (valid for one year, renewable); (2) Article 250 — during a National Emergency; (3) Article 252 — when two or more states consent to Parliament legislating for them; (4) Article 253 — to implement international treaties and agreements; (5) Article 356 — during President's Rule in a state.

Administrative Relations (Articles 256-263)

• Article 256: A state's executive power must be exercised to ensure compliance with laws made by Parliament; the Union can issue directions to states for this purpose.
• Article 257: The Union's executive power extends to giving directions to a state on matters of national or military importance.
• Article 262: Empowers Parliament to adjudicate disputes over the waters of inter-state rivers, and to bar the Supreme Court and other courts from exercising jurisdiction over such disputes.
• Article 263: Allows the President to establish an Inter-State Council to inquire into and advise on disputes between states, and to discuss subjects of common interest. The Inter-State Council was formally set up in 1990 on the recommendation of the Sarkaria Commission (1983).

Financial Relations (Articles 268-293, Part XII)

• Article 268: Duties levied by the Union but collected and retained by the states (e.g., stamp duties).
• Article 269 / 269A: Taxes levied and collected by the Union but assigned to states; Article 269A specifically governs GST on inter-state trade (IGST), introduced by the 101st Amendment Act, 2016.
• Article 275: Statutory grants-in-aid to states in need of financial assistance.
• Article 280: Provides for a Finance Commission, constituted by the President every five years, to recommend the distribution of the net proceeds of taxes between the Union and the states.
• Article 282: Allows both the Union and the states to make discretionary grants for any public purpose.

Key Facts

• The Sarkaria Commission (1983) was the first major body to comprehensively review Centre-State relations; the Punchhi Commission (2007) reviewed them again, especially after developments like frequent use (and misuse) of Article 356.
• The Inter-State Council (Article 263) was constituted by a Presidential Order in 1990.
• The 16th Finance Commission, chaired by Dr. Arvind Panagariya, is expected to submit its report covering the 2026-31 award period.

Centre-State Relations MCQ — Practice Questions

Q1. Legislative relations between the Centre and states are dealt with in which Articles?
A. Articles 245-255 B. Articles 256-263 C. Articles 268-293 D. Articles 214-231
Answer: A. Articles 245-255

Q2. In case of a conflict between a Union law and a State law on a Concurrent List subject, whose law prevails?
A. State law always B. Union law, unless the State law has Presidential assent C. Whichever was passed first D. The Supreme Court decides case-by-case
Answer: B. Union law, unless the State law has Presidential assent (Article 254)

Q3. Under which Article can the Rajya Sabha authorise Parliament to legislate on a State List subject by a two-thirds majority resolution?
A. Article 249 B. Article 250 C. Article 252 D. Article 253
Answer: A. Article 249

Q4. A resolution passed by the Rajya Sabha under Article 249 empowering Parliament to legislate on a State subject remains in force for how long?
A. 6 months B. 1 year C. 2 years D. 5 years
Answer: B. 1 year (renewable by a further resolution)

Q5. The Inter-State Council is established under which Article?
A. Article 262 B. Article 263 C. Article 280 D. Article 356
Answer: B. Article 263

Q6. Adjudication of inter-state river water disputes is provided for under which Article?
A. Article 262 B. Article 263 C. Article 268 D. Article 280
Answer: A. Article 262

Q7. The Finance Commission, which recommends distribution of tax proceeds between the Union and states, is constituted under which Article?
A. Article 275 B. Article 280 C. Article 282 D. Article 293
Answer: B. Article 280

Q8. Which Article specifically governs the levy and collection of Integrated GST (IGST) on inter-state trade?
A. Article 268 B. Article 269 C. Article 269A D. Article 275
Answer: C. Article 269A

Q9. Which commission was the first to comprehensively review Centre-State relations in India?
A. Punchhi Commission B. Sarkaria Commission C. Rajamannar Committee D. Ashok Mehta Committee
Answer: B. Sarkaria Commission (1983)

Q10. The Inter-State Council was actually constituted (set up) in which year?
A. 1983 B. 1990 C. 2000 D. 2007
Answer: B. 1990

Frequently Asked Questions

Q. What are the three types of Centre-State relations under the Constitution?
Legislative relations (Articles 245-255), administrative relations (Articles 256-263), and financial relations (Articles 268-293) — together they define how legislative, executive and fiscal powers are shared between the Union and the states.

Q. Through how many Articles can Parliament legislate on a subject in the State List?
Five: Article 249 (Rajya Sabha resolution), Article 250 (National Emergency), Article 252 (consent of two or more states), Article 253 (international agreements) and Article 356 (President's Rule in a state).

Practice More on Indian Polity

Test yourself with the free Centre-State Relations quiz on FreePrep, and read the Parliament of India MCQ and President of India MCQ for related Polity practice. You can also attempt today's free daily quiz.