Laxmikanth Test: Centre - State Relations - UPSC MCQ

• The Parliament of India is competent to legislate on all matters that are enumerated in the Union List and the Concurrent List of the Constitution. 

• In the Concurrent List, the Parliament and the State Legislatures have joint jurisdiction. 

• However, in case of conflict over any law made under the Concurrent List, the Union Law will prevail upon the State Law provided the State Law has not received the earlier assent of the President. 

• Parliament alone has the power to make laws on matters not included in the state list or concurrent list.

1. Statement 1 is correct. The Finance Commission is indeed appointed by the President of India every five years or earlier, as needed, to recommend how the net proceeds of taxes should be distributed between the Centre and the States. This is a fundamental aspect of fiscal federalism in India enshrined under Article 280 of the Constitution.

2. Statement 2 is correct. During a national emergency declared under Article 352, the President of India has the power to modify the constitutional distribution of financial resources between the Centre and the States. This includes altering the sharing of taxes and grants, which remains effective throughout the financial year when the emergency is in operation.

3. Statement 3 is incorrect. The GST Council, established under Article 279-A, is a constitutional body responsible for making recommendations to the Union and States on issues related to GST, including tax rates, exemptions, and model GST laws. While it plays a role in the GST framework's functioning, its primary focus is not solely on revenue distribution but on creating a harmonized tax system across India.

Therefore, the correct statements are 1 and 2, making Option B the accurate choice.

• Statement-I: The Governor can indeed reserve a bill passed by the state legislature for the consideration of the President. This power of reservation allows the President to review and potentially withhold assent to a bill passed by the state legislature.
• Statement-II: The President does hold absolute veto power over a bill reserved by the Governor. This means that the President can refuse to give assent to a bill that has been reserved by the Governor, effectively vetoing the legislation.

Both statements are individually correct, but Statement-II does not directly explain or elaborate on Statement-I. The President's veto power over a bill reserved by the Governor is a separate aspect of the legislative process.

Statement 1 : Correct: The Finance Commission, established under Article 280 of the Indian Constitution, is a quasi-judicial body constituted by the President every five years. It provides recommendations on:

1. Distribution of net tax proceeds between the Centre and States.
2. Principles governing grants-in-aid to States.
3. Measures to enhance the Consolidated Fund of a State to supplement the resources of Panchayats and Municipalitie

Statement 2 : The GST Council's mandate does not include "integrating various taxes" or determining the place of supply. These aspects are governed by the GST Act and related rules, not by the Council directly. The GST Council is primarily responsible for:

1. Recommending taxes, cesses, and surcharges to be subsumed under GST.
2. Recommending GST rates, exemptions, and threshold limits.
3. Resolving disputes related to GST implementation among states and the Centre.

Therefore,Correct Answer - Option C

• Article 268 involves duties levied by the Centre but collected by the States. This pair is correct.
• Article 269 covers taxes levied and collected by the Union but assigned to the States. This is also correct.
• Article 270 refers to taxes levied and collected by the Union and distributed between the Union and the States, not surcharges. Therefore, this is incorrect.
• Article 271 pertains to surcharges on certain duties for the Centre, not grants-in-aid. This is incorrect.

Therefore,Correct Answer- Option B

1.The National Integration Council (NIC) is a  non-constitutional body, meaning it is not established by the Constitution but by executive action. Its primary role is to address challenges related to communal harmony, social justice, and national integration. By bringing together representatives from both the Centre and the States, the NIC fosters dialogue and cooperation on pressing social issues, thus playing a key role in Centre-State coordination.

 2.The Finance Commission, on the other hand, is a constitutional body established under Article 280 of the Indian Constitution. Its role is to make recommendations on the distribution of financial resources between the Centre and the States. While it does facilitate financial coordination, it is excluded from consideration here as the question explicitly asks for non-constitutional mechanisms.

3. The Regional Development Councils are non-constitutional mechanisms set up to address developmental issues in specific regions. These councils serve as a platform for the Centre and States to collaborate on regional planning and ensure that the developmental needs of different regions are met. They promote Centre-State coordination by focusing on shared goals and policies for regional growth.

4. Finally, the University Grants Commission (UGC) is a statutory body established by the UGC Act, 1956. While not a constitutional mechanism, it plays a critical role in maintaining and coordinating standards of higher education across the country. Since education is a subject on the Concurrent List, the UGC acts as a bridge between the Centre and the States to ensure uniformity and collaboration in this sector.

Therefore ,Correct Answer- Option D

1. Goods and Services Tax Council - Established under Article 279-A: This pair is correctly matched. The GST Council was established under Article 279-A of the Constitution of India, which was introduced by the 101st Amendment Act of 2016.

2. Finance Commission - Recommends measures to supplement the resources of Panchayats: This pair is correctly matched. The Finance Commission, under Article 280, provides recommendations on the distribution of tax revenues between the Centre and the States, and it also suggests measures to augment the Consolidated Fund of a State to supplement the resources of Panchayats and Municipalities.

3. Sarkaria Commission - Recommended abolition of All-India Services: This pair is incorrectly matched. The Sarkaria Commission, which reviewed Centre-State relations, did not recommend the abolition of All-India Services. In fact, it emphasized the importance of these services for maintaining the unity and integrity of the nation.

4. Punchhi Commission - Suggested fixed tenure for Governors: This pair is correctly matched. The Punchhi Commission recommended that Governors should have a fixed tenure to ensure stability and neutrality in the post.

Thus, only pairs 1, 2, and 4 are correctly matched, leading to the correct answer being Option C.

1. Statement 1: Correct. During a national emergency, the Indian Constitution allows Parliament to legislate on subjects in the State List. This provision ensures that the national interest can be prioritized during emergencies, allowing the central government to enact laws that would normally fall within the jurisdiction of state legislatures.

2. Statement 2: Correct. The President of India has the power to establish regulations for Union Territories that carry the same force as parliamentary acts. These regulations can indeed modify or annul existing parliamentary acts concerning those territories, particularly when a Union Territory's legislative assembly is either suspended or dissolved.

3. Statement 3: Correct. The Constitution provides that the Governor of a state can issue directions that a parliamentary act does not apply to a scheduled area within the state, or that it applies with modifications and exceptions. This is part of the special provisions for the administration and governance of scheduled areas and tribes, highlighting the flexibility given to states in administering areas with distinct socio-cultural characteristics.

All three statements are correct, making Option D the right answer. This question tests the understanding of how legislative powers are distributed and exercised under special circumstances within the Indian federal structure.

The Concurrent List in the Seventh Schedule of the Indian Constitution enumerates matters on which both the Parliament and the State Legislatures can make laws. Uniformity of legislation across the country is desirable but not essential for these matters. If there is a conflict between laws made by Parliament and State Legislatures, the law made by Parliament prevails, to the extent of the inconsistency, as per Article 254 of the Constitution.

Examples of subjects in the Concurrent List include criminal law, marriage and divorce, bankruptcy, and education, where having some degree of uniformity across the country is useful, but States are also allowed to legislate according to their unique needs.

Therefore,Correct Answer- Option B

As per Article 253 of the Indian Constitution:

• The Parliament has the power to make laws for the whole or any part of India to implement international treaties, agreements, or conventions.
• This power is exclusive to the Parliament and does not require the consent of any State, even if the subject matter falls within the State List of the Seventh Schedule.

This provision ensures that the Central Government can fulfill its international obligations without being hindered by State concerns.

Therefore,Correct Answer- Option D