Union-State Relations — Set 11

Correct Answer: C. Both Parliament and State Legislatures for intra-state supply (except for alcohol and petroleum products)

Article 246A (inserted by the 101st Amendment Act 2016) provides that notwithstanding anything in Articles 246 and 254, Parliament and, subject to clause (2), the Legislature of every State, have power to make laws with respect to goods and services tax imposed by the Union or by such State. This created a concurrent power to levy GST, revolutionizing Centre-State fiscal relations. The power to amend the Constitution is a special power that cannot be used to destroy its basic structure.

Correct Answer: C. Neither Centre nor state governments can tax each other's instrumentalities or properties

The doctrine of mutual immunity of instrumentalities (derived from American constitutional law) was applied in Indian context in cases like State of West Bengal v. Union of India (1964). The doctrine means that the Centre cannot tax state instrumentalities and states cannot tax Central instrumentalities. This prevents one government from financially harassing the other.

Correct Answer: C. Import/export of goods (outside territorial boundary) and supply of essential commodities (Parliament can restrict)

Article 286 imposes restrictions on the power of states to levy sales/purchase tax on goods. States cannot levy tax on: (a) supply of goods outside the state territory (imports/exports); and (b) supplies of goods of special importance in inter-state trade or commerce as Parliament may by law specify. The 101st Amendment and GST made this largely redundant for goods and services.

Correct Answer: B. Article 301 — freedom of trade, commerce and intercourse

Article 301 provides that subject to other provisions of Part XIII, trade, commerce, and intercourse throughout India shall be free. This creates an internal common market. Parliament can impose restrictions under Article 302 in the public interest, and states can impose non-discriminatory taxes under Article 304. This is similar to the Commerce Clause in the US Constitution.

Correct Answer: A. Public acts, records, and judicial proceedings of one state to be recognized in all states (Full Faith and Credit)

Article 261 provides that full faith and credit shall be given throughout the territory of India to public acts, records, and judicial proceedings of the Union and of every State. This is similar to the Full Faith and Credit Clause in the US Constitution. It means that a court judgment in one state is enforceable in another state.

Correct Answer: B. K.C. Wheare

K.C. Wheare, a distinguished British constitutional scholar who wrote 'Federal Government' (1946), described the Indian Constitution as 'quasi-federal' — having a federal structure with some unitary features. He noted that India has many features of a federation (division of powers, bicameralism, independent judiciary) but also significant unitary features (strong Centre, emergency powers, All India Services, centralized planning).

Correct Answer: C. C) Legislative relations

Part XI of the Indian Constitution (Articles 245-255) deals specifically with legislative relations between the Union and the States. It distributes legislative powers through the three lists (Union, State, Concurrent) in the Seventh Schedule. Articles 245-255 cover topics like extent of laws, subject matter of lists, residuary powers, Parliament's power to legislate in national interest, and supremacy of central legislation.

Correct Answer: B. B) Special majority of two-thirds present and voting

Article 249 provides that if the Rajya Sabha declares by a resolution supported by not less than two-thirds of the members present and voting that it is necessary or expedient in the national interest that Parliament should make laws on a State List subject, Parliament becomes empowered to make such laws. Such laws are valid for one year from the date of the resolution and can be extended by further resolutions of one year each. Parliament is the supreme legislative body of India, consisting of the President, Lok Sabha, and Rajya Sabha.

Correct Answer: B. B) Article 250

Article 250 provides that while a Proclamation of National Emergency is in operation, Parliament shall have power to make laws for the whole or any part of the territory of India with respect to any of the matters enumerated in the State List. This power remains in force during the duration of the Emergency and for six months after the Emergency ceases to operate (for laws passed after the Emergency). Parliament is the supreme legislative body of India, consisting of the President, Lok Sabha, and Rajya Sabha.

Correct Answer: B. B) Two or more states

Article 252 provides that if the Legislatures of two or more States pass resolutions to the effect that it is desirable to have a Parliament law to regulate the matter, and if Parliament thinks fit to legislate on the matter, Parliament may pass such a law. The law so made applies only to those states that passed the resolution and any other state that later adopts it by its own resolution. Parliament is the supreme legislative body of India, consisting of the President, Lok Sabha, and Rajya Sabha.