Notes: Centre-State Relations- 2 | Political Science & International Relations: Mains Optional - UPSC PDF Download

 Page 1


 
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Administrative relations: T
the foundations of ‘cooperative federalism
Some important provisions that aid the same include:
(i) The Parliament can provide for the adjudication of any dispute or
with respect to the use, distribution and control of waters of any
and river valley. 
(ii) The President can establ
investigate and discuss subject of common interest between the Centre and
states. Such a council was set up in 1990.
(iii) Full faith and credit is to be given throughout the territory of India to
acts, records and judicial proceedings of the Centre and every state.
(iv) The Parliament can appoint an appropriate authority to carry out the
purposes of the constitutional provisions relating to the interstate freedom
trade, commerce and intercour
far. 
All India Services: The country in its efforts to keep the whole country 
together and provide for egalitarian growth inherited and continued with the 
colonial bureaucratic steel framework. These are the 
IPS and IFS. The members of these services occupy top positions (or key posts) 
under both the Centre and the states and serve them by turns. But, they are 
recruited and trained by the Centre.
These services are controlled jointly by the Centre and the states. The
control lies with the Central government while the immediate control
the state governments. In 1947, Indian Civil Service (ICS) was replaced by IAS 
and the Indian Police (IP) was replaced by IPS and
Constitution as All-India Services. In 1966, the Indian Forest Service (IFS) was 
created as the third All-India Service. 
Article 312 of the Constitution authorises the
Services on the basis of a Rajya Sabha
three all-India services, irrespective of their division among
 
 
www.YouTube.com/SleepyClasses 
www.SleepyClasses.com 
The Indian Constitution tries to harbour within itself 
cooperative federalism’ despite the tilt towards Centre. 
provisions that aid the same include: 
(i) The Parliament can provide for the adjudication of any dispute or
with respect to the use, distribution and control of waters of any inter
(ii) The President can establish (under Article 263) an Inter-State Council to
investigate and discuss subject of common interest between the Centre and
h a council was set up in 1990. 
(iii) Full faith and credit is to be given throughout the territory of India to
acts, records and judicial proceedings of the Centre and every state. 
The Parliament can appoint an appropriate authority to carry out the
purposes of the constitutional provisions relating to the interstate freedom
trade, commerce and intercourse. But, no such authority has been appointed so 
The country in its efforts to keep the whole country 
together and provide for egalitarian growth inherited and continued with the 
colonial bureaucratic steel framework. These are the all-India services
members of these services occupy top positions (or key posts) 
Centre and the states and serve them by turns. But, they are 
trained by the Centre. 
These services are controlled jointly by the Centre and the states. The
control lies with the Central government while the immediate control
In 1947, Indian Civil Service (ICS) was replaced by IAS 
IP) was replaced by IPS and recognised by the 
India Services. In 1966, the Indian Forest Service (IFS) was 
India Service.  
Article 312 of the Constitution authorises the Parliament to create new All
Services on the basis of a Rajya Sabha resolution to that effect. Each of these 
India services, irrespective of their division among different states, 
Indian Constitution tries to harbour within itself 
despite the tilt towards Centre. 
(i) The Parliament can provide for the adjudication of any dispute or complaint 
inter-state river 
State Council to 
investigate and discuss subject of common interest between the Centre and the 
(iii) Full faith and credit is to be given throughout the territory of India to public 
The Parliament can appoint an appropriate authority to carry out the 
purposes of the constitutional provisions relating to the interstate freedom of 
appointed so 
The country in its efforts to keep the whole country 
together and provide for egalitarian growth inherited and continued with the 
India services—IAS, 
members of these services occupy top positions (or key posts) 
Centre and the states and serve them by turns. But, they are 
These services are controlled jointly by the Centre and the states. The ultimate 
control lies with the Central government while the immediate control vests with 
In 1947, Indian Civil Service (ICS) was replaced by IAS 
recognised by the 
India Services. In 1966, the Indian Forest Service (IFS) was 
Parliament to create new All-India 
Each of these 
different states, 
Page 2


 
www.YouTube.com/SleepyClasses
Administrative relations: T
the foundations of ‘cooperative federalism
Some important provisions that aid the same include:
(i) The Parliament can provide for the adjudication of any dispute or
with respect to the use, distribution and control of waters of any
and river valley. 
(ii) The President can establ
investigate and discuss subject of common interest between the Centre and
states. Such a council was set up in 1990.
(iii) Full faith and credit is to be given throughout the territory of India to
acts, records and judicial proceedings of the Centre and every state.
(iv) The Parliament can appoint an appropriate authority to carry out the
purposes of the constitutional provisions relating to the interstate freedom
trade, commerce and intercour
far. 
All India Services: The country in its efforts to keep the whole country 
together and provide for egalitarian growth inherited and continued with the 
colonial bureaucratic steel framework. These are the 
IPS and IFS. The members of these services occupy top positions (or key posts) 
under both the Centre and the states and serve them by turns. But, they are 
recruited and trained by the Centre.
These services are controlled jointly by the Centre and the states. The
control lies with the Central government while the immediate control
the state governments. In 1947, Indian Civil Service (ICS) was replaced by IAS 
and the Indian Police (IP) was replaced by IPS and
Constitution as All-India Services. In 1966, the Indian Forest Service (IFS) was 
created as the third All-India Service. 
Article 312 of the Constitution authorises the
Services on the basis of a Rajya Sabha
three all-India services, irrespective of their division among
 
 
www.YouTube.com/SleepyClasses 
www.SleepyClasses.com 
The Indian Constitution tries to harbour within itself 
cooperative federalism’ despite the tilt towards Centre. 
provisions that aid the same include: 
(i) The Parliament can provide for the adjudication of any dispute or
with respect to the use, distribution and control of waters of any inter
(ii) The President can establish (under Article 263) an Inter-State Council to
investigate and discuss subject of common interest between the Centre and
h a council was set up in 1990. 
(iii) Full faith and credit is to be given throughout the territory of India to
acts, records and judicial proceedings of the Centre and every state. 
The Parliament can appoint an appropriate authority to carry out the
purposes of the constitutional provisions relating to the interstate freedom
trade, commerce and intercourse. But, no such authority has been appointed so 
The country in its efforts to keep the whole country 
together and provide for egalitarian growth inherited and continued with the 
colonial bureaucratic steel framework. These are the all-India services
members of these services occupy top positions (or key posts) 
Centre and the states and serve them by turns. But, they are 
trained by the Centre. 
These services are controlled jointly by the Centre and the states. The
control lies with the Central government while the immediate control
In 1947, Indian Civil Service (ICS) was replaced by IAS 
IP) was replaced by IPS and recognised by the 
India Services. In 1966, the Indian Forest Service (IFS) was 
India Service.  
Article 312 of the Constitution authorises the Parliament to create new All
Services on the basis of a Rajya Sabha resolution to that effect. Each of these 
India services, irrespective of their division among different states, 
Indian Constitution tries to harbour within itself 
despite the tilt towards Centre. 
(i) The Parliament can provide for the adjudication of any dispute or complaint 
inter-state river 
State Council to 
investigate and discuss subject of common interest between the Centre and the 
(iii) Full faith and credit is to be given throughout the territory of India to public 
The Parliament can appoint an appropriate authority to carry out the 
purposes of the constitutional provisions relating to the interstate freedom of 
appointed so 
The country in its efforts to keep the whole country 
together and provide for egalitarian growth inherited and continued with the 
India services—IAS, 
members of these services occupy top positions (or key posts) 
Centre and the states and serve them by turns. But, they are 
These services are controlled jointly by the Centre and the states. The ultimate 
control lies with the Central government while the immediate control vests with 
In 1947, Indian Civil Service (ICS) was replaced by IAS 
recognised by the 
India Services. In 1966, the Indian Forest Service (IFS) was 
Parliament to create new All-India 
Each of these 
different states, 
 
www.YouTube.com/SleepyClasses
form a single service with common rights and status and
throughout the country.  
A unified administrative system
for the following reasons: 
(i) they help in maintaining high standard of
as well as in the states; 
(ii) they help to ensure
the country; 
(iii) they facilitate liaison, cooperation, coordination and joint action on the 
issues of common interest between the Centre and the states.
Judiciary and Centre-State relations:
no dual system of administration of
established an integrated judicial
the state high courts below it.
the President in consultation with the Chief Justice of India and the governor of 
the state. 
They can also be transferred and removed by the P
establish a common high court for two or more states.
Maharashtra and Goa or Punjab and Haryana have a common
Supreme Court plays the role of mediator and umpire for disputes between 
Centre and states and amongst states themselves as part of its origina
jurisdiction.  
Financial relations: Articles 268 to 293 in
with Centre–state financial relations. Besides these, there are other provisions 
dealing with the same subject.
of taxation in this regard as provided by the Constitution:
• The Parliament has exclusive power to levy taxes on subjects 
enumerated in the Union List 
• The state legislature has exclusive power to levy taxes on subjects
enumerated in the State List
 
 
www.YouTube.com/SleepyClasses 
www.SleepyClasses.com 
form a single service with common rights and status and uniform scales of pay 
A unified administrative system led by All India Services was seen necessary 
they help in maintaining high standard of administration in the Centre 
as well as in the states;  
they help to ensure uniformity of the administrative system t
facilitate liaison, cooperation, coordination and joint action on the 
common interest between the Centre and the states.
State relations: Though India has a dual polity, there is 
no dual system of administration of justice. The Constitution, on the 
established an integrated judicial system with the Supreme Court at the top and 
the state high courts below it. The judges of a state high court are appointed by 
consultation with the Chief Justice of India and the governor of 
transferred and removed by the President. The Parliament can 
establish a common high court for two or more states. For example, 
oa or Punjab and Haryana have a common high court.
Supreme Court plays the role of mediator and umpire for disputes between 
Centre and states and amongst states themselves as part of its origina
Articles 268 to 293 in Part XII of the Constitution deal 
financial relations. Besides these, there are other provisions 
same subject. It is important to look at the allocation of powers 
of taxation in this regard as provided by the Constitution: 
• The Parliament has exclusive power to levy taxes on subjects 
in the Union List  
• The state legislature has exclusive power to levy taxes on subjects
enumerated in the State List 
uniform scales of pay 
was seen necessary 
administration in the Centre 
uniformity of the administrative system throughout 
facilitate liaison, cooperation, coordination and joint action on the 
common interest between the Centre and the states. 
Though India has a dual polity, there is 
 other hand, 
system with the Supreme Court at the top and 
are appointed by 
consultation with the Chief Justice of India and the governor of 
The Parliament can 
For example, 
high court. The 
Supreme Court plays the role of mediator and umpire for disputes between 
Centre and states and amongst states themselves as part of its original 
Part XII of the Constitution deal 
financial relations. Besides these, there are other provisions 
It is important to look at the allocation of powers 
• The Parliament has exclusive power to levy taxes on subjects 
• The state legislature has exclusive power to levy taxes on subjects 
Page 3


 
www.YouTube.com/SleepyClasses
Administrative relations: T
the foundations of ‘cooperative federalism
Some important provisions that aid the same include:
(i) The Parliament can provide for the adjudication of any dispute or
with respect to the use, distribution and control of waters of any
and river valley. 
(ii) The President can establ
investigate and discuss subject of common interest between the Centre and
states. Such a council was set up in 1990.
(iii) Full faith and credit is to be given throughout the territory of India to
acts, records and judicial proceedings of the Centre and every state.
(iv) The Parliament can appoint an appropriate authority to carry out the
purposes of the constitutional provisions relating to the interstate freedom
trade, commerce and intercour
far. 
All India Services: The country in its efforts to keep the whole country 
together and provide for egalitarian growth inherited and continued with the 
colonial bureaucratic steel framework. These are the 
IPS and IFS. The members of these services occupy top positions (or key posts) 
under both the Centre and the states and serve them by turns. But, they are 
recruited and trained by the Centre.
These services are controlled jointly by the Centre and the states. The
control lies with the Central government while the immediate control
the state governments. In 1947, Indian Civil Service (ICS) was replaced by IAS 
and the Indian Police (IP) was replaced by IPS and
Constitution as All-India Services. In 1966, the Indian Forest Service (IFS) was 
created as the third All-India Service. 
Article 312 of the Constitution authorises the
Services on the basis of a Rajya Sabha
three all-India services, irrespective of their division among
 
 
www.YouTube.com/SleepyClasses 
www.SleepyClasses.com 
The Indian Constitution tries to harbour within itself 
cooperative federalism’ despite the tilt towards Centre. 
provisions that aid the same include: 
(i) The Parliament can provide for the adjudication of any dispute or
with respect to the use, distribution and control of waters of any inter
(ii) The President can establish (under Article 263) an Inter-State Council to
investigate and discuss subject of common interest between the Centre and
h a council was set up in 1990. 
(iii) Full faith and credit is to be given throughout the territory of India to
acts, records and judicial proceedings of the Centre and every state. 
The Parliament can appoint an appropriate authority to carry out the
purposes of the constitutional provisions relating to the interstate freedom
trade, commerce and intercourse. But, no such authority has been appointed so 
The country in its efforts to keep the whole country 
together and provide for egalitarian growth inherited and continued with the 
colonial bureaucratic steel framework. These are the all-India services
members of these services occupy top positions (or key posts) 
Centre and the states and serve them by turns. But, they are 
trained by the Centre. 
These services are controlled jointly by the Centre and the states. The
control lies with the Central government while the immediate control
In 1947, Indian Civil Service (ICS) was replaced by IAS 
IP) was replaced by IPS and recognised by the 
India Services. In 1966, the Indian Forest Service (IFS) was 
India Service.  
Article 312 of the Constitution authorises the Parliament to create new All
Services on the basis of a Rajya Sabha resolution to that effect. Each of these 
India services, irrespective of their division among different states, 
Indian Constitution tries to harbour within itself 
despite the tilt towards Centre. 
(i) The Parliament can provide for the adjudication of any dispute or complaint 
inter-state river 
State Council to 
investigate and discuss subject of common interest between the Centre and the 
(iii) Full faith and credit is to be given throughout the territory of India to public 
The Parliament can appoint an appropriate authority to carry out the 
purposes of the constitutional provisions relating to the interstate freedom of 
appointed so 
The country in its efforts to keep the whole country 
together and provide for egalitarian growth inherited and continued with the 
India services—IAS, 
members of these services occupy top positions (or key posts) 
Centre and the states and serve them by turns. But, they are 
These services are controlled jointly by the Centre and the states. The ultimate 
control lies with the Central government while the immediate control vests with 
In 1947, Indian Civil Service (ICS) was replaced by IAS 
recognised by the 
India Services. In 1966, the Indian Forest Service (IFS) was 
Parliament to create new All-India 
Each of these 
different states, 
 
www.YouTube.com/SleepyClasses
form a single service with common rights and status and
throughout the country.  
A unified administrative system
for the following reasons: 
(i) they help in maintaining high standard of
as well as in the states; 
(ii) they help to ensure
the country; 
(iii) they facilitate liaison, cooperation, coordination and joint action on the 
issues of common interest between the Centre and the states.
Judiciary and Centre-State relations:
no dual system of administration of
established an integrated judicial
the state high courts below it.
the President in consultation with the Chief Justice of India and the governor of 
the state. 
They can also be transferred and removed by the P
establish a common high court for two or more states.
Maharashtra and Goa or Punjab and Haryana have a common
Supreme Court plays the role of mediator and umpire for disputes between 
Centre and states and amongst states themselves as part of its origina
jurisdiction.  
Financial relations: Articles 268 to 293 in
with Centre–state financial relations. Besides these, there are other provisions 
dealing with the same subject.
of taxation in this regard as provided by the Constitution:
• The Parliament has exclusive power to levy taxes on subjects 
enumerated in the Union List 
• The state legislature has exclusive power to levy taxes on subjects
enumerated in the State List
 
 
www.YouTube.com/SleepyClasses 
www.SleepyClasses.com 
form a single service with common rights and status and uniform scales of pay 
A unified administrative system led by All India Services was seen necessary 
they help in maintaining high standard of administration in the Centre 
as well as in the states;  
they help to ensure uniformity of the administrative system t
facilitate liaison, cooperation, coordination and joint action on the 
common interest between the Centre and the states.
State relations: Though India has a dual polity, there is 
no dual system of administration of justice. The Constitution, on the 
established an integrated judicial system with the Supreme Court at the top and 
the state high courts below it. The judges of a state high court are appointed by 
consultation with the Chief Justice of India and the governor of 
transferred and removed by the President. The Parliament can 
establish a common high court for two or more states. For example, 
oa or Punjab and Haryana have a common high court.
Supreme Court plays the role of mediator and umpire for disputes between 
Centre and states and amongst states themselves as part of its origina
Articles 268 to 293 in Part XII of the Constitution deal 
financial relations. Besides these, there are other provisions 
same subject. It is important to look at the allocation of powers 
of taxation in this regard as provided by the Constitution: 
• The Parliament has exclusive power to levy taxes on subjects 
in the Union List  
• The state legislature has exclusive power to levy taxes on subjects
enumerated in the State List 
uniform scales of pay 
was seen necessary 
administration in the Centre 
uniformity of the administrative system throughout 
facilitate liaison, cooperation, coordination and joint action on the 
common interest between the Centre and the states. 
Though India has a dual polity, there is 
 other hand, 
system with the Supreme Court at the top and 
are appointed by 
consultation with the Chief Justice of India and the governor of 
The Parliament can 
For example, 
high court. The 
Supreme Court plays the role of mediator and umpire for disputes between 
Centre and states and amongst states themselves as part of its original 
Part XII of the Constitution deal 
financial relations. Besides these, there are other provisions 
It is important to look at the allocation of powers 
• The Parliament has exclusive power to levy taxes on subjects 
• The state legislature has exclusive power to levy taxes on subjects 
 
www.YouTube.com/SleepyClasses
• Both the Parliament and the state legislature can levy taxes on subjects
enumerated in the Concurrent List 
• The residuary power of taxation (that is, the power to impose taxes not
enumerated in any of the three lists) is vested in the Parliament. Under 
this provision, the Parliament has imposed gift tax, wealth tax and 
expenditure tax. 
The Constitution also draws a distinction between the power to levy and
a tax and the power to appropriate the proceeds of the tax so levied
collected. For example, the income
its proceeds are distributed between the Centre and the states.
With the coming in of GST by the 101
the entire gamut of these financial relations was revoluti
pertinent to study the financia
GST was considered to be a giant leap from the colonial legacy tax system to 
one more suited to the needs of d
today. It defines a new vision of federalism where the tangles between the 
Union and state governments in exercise of their taxation powers give way to 
collective and harmonious tango.
The former tax system was arch
confined to goods. The taxation of services was not even contemplated until 
1994 when service tax was introduced under the general residual Entry 97 in the 
Union List (88
th
 CAA- Article 268
and consumption and on the basis of both origin and destination, resulting in 
significant cascading and shrinking of the GDP pie.
GST is an Indirect Tax which has replaced many Indirect Taxes in India. The 
Goods and Service Tax Act was passed in the Parliament on 
The Act came into effect on 1st July 2017; Goods & Services Tax Law in India 
is a comprehensive, multi-stage, destination
value addition.  
 
 
 
www.YouTube.com/SleepyClasses 
www.SleepyClasses.com 
• Both the Parliament and the state legislature can levy taxes on subjects
merated in the Concurrent List  
• The residuary power of taxation (that is, the power to impose taxes not
of the three lists) is vested in the Parliament. Under 
provision, the Parliament has imposed gift tax, wealth tax and 
Constitution also draws a distinction between the power to levy and
a tax and the power to appropriate the proceeds of the tax so levied
collected. For example, the income-tax is levied and collected by the
its proceeds are distributed between the Centre and the states. 
With the coming in of GST by the 101
st
 Constitutional Amendment Act in 2017, 
the entire gamut of these financial relations was revolutionised and it is 
pertinent to study the financial relations in the wake of these changes. 
GST was considered to be a giant leap from the colonial legacy tax system to 
one more suited to the needs of dynamic and vibrant economy that India is 
today. It defines a new vision of federalism where the tangles between the 
Union and state governments in exercise of their taxation powers give way to 
collective and harmonious tango. 
The former tax system was archaic and provided for narrow taxes, largely 
confined to goods. The taxation of services was not even contemplated until 
1994 when service tax was introduced under the general residual Entry 97 in the 
Article 268-A). Taxes are imposed on both production 
umption and on the basis of both origin and destination, resulting in 
significant cascading and shrinking of the GDP pie. 
GST is an Indirect Tax which has replaced many Indirect Taxes in India. The 
Goods and Service Tax Act was passed in the Parliament on 29th March 2017. 
The Act came into effect on 1st July 2017; Goods & Services Tax Law in India 
stage, destination-based tax that is levied on every 
• Both the Parliament and the state legislature can levy taxes on subjects 
• The residuary power of taxation (that is, the power to impose taxes not 
of the three lists) is vested in the Parliament. Under 
provision, the Parliament has imposed gift tax, wealth tax and 
Constitution also draws a distinction between the power to levy and collect 
a tax and the power to appropriate the proceeds of the tax so levied and 
tax is levied and collected by the Centre but 
Constitutional Amendment Act in 2017, 
onised and it is 
l relations in the wake of these changes.  
GST was considered to be a giant leap from the colonial legacy tax system to 
ynamic and vibrant economy that India is 
today. It defines a new vision of federalism where the tangles between the 
Union and state governments in exercise of their taxation powers give way to 
aic and provided for narrow taxes, largely 
confined to goods. The taxation of services was not even contemplated until 
1994 when service tax was introduced under the general residual Entry 97 in the 
. Taxes are imposed on both production 
umption and on the basis of both origin and destination, resulting in 
GST is an Indirect Tax which has replaced many Indirect Taxes in India. The 
29th March 2017. 
The Act came into effect on 1st July 2017; Goods & Services Tax Law in India 
based tax that is levied on every 
Page 4


 
www.YouTube.com/SleepyClasses
Administrative relations: T
the foundations of ‘cooperative federalism
Some important provisions that aid the same include:
(i) The Parliament can provide for the adjudication of any dispute or
with respect to the use, distribution and control of waters of any
and river valley. 
(ii) The President can establ
investigate and discuss subject of common interest between the Centre and
states. Such a council was set up in 1990.
(iii) Full faith and credit is to be given throughout the territory of India to
acts, records and judicial proceedings of the Centre and every state.
(iv) The Parliament can appoint an appropriate authority to carry out the
purposes of the constitutional provisions relating to the interstate freedom
trade, commerce and intercour
far. 
All India Services: The country in its efforts to keep the whole country 
together and provide for egalitarian growth inherited and continued with the 
colonial bureaucratic steel framework. These are the 
IPS and IFS. The members of these services occupy top positions (or key posts) 
under both the Centre and the states and serve them by turns. But, they are 
recruited and trained by the Centre.
These services are controlled jointly by the Centre and the states. The
control lies with the Central government while the immediate control
the state governments. In 1947, Indian Civil Service (ICS) was replaced by IAS 
and the Indian Police (IP) was replaced by IPS and
Constitution as All-India Services. In 1966, the Indian Forest Service (IFS) was 
created as the third All-India Service. 
Article 312 of the Constitution authorises the
Services on the basis of a Rajya Sabha
three all-India services, irrespective of their division among
 
 
www.YouTube.com/SleepyClasses 
www.SleepyClasses.com 
The Indian Constitution tries to harbour within itself 
cooperative federalism’ despite the tilt towards Centre. 
provisions that aid the same include: 
(i) The Parliament can provide for the adjudication of any dispute or
with respect to the use, distribution and control of waters of any inter
(ii) The President can establish (under Article 263) an Inter-State Council to
investigate and discuss subject of common interest between the Centre and
h a council was set up in 1990. 
(iii) Full faith and credit is to be given throughout the territory of India to
acts, records and judicial proceedings of the Centre and every state. 
The Parliament can appoint an appropriate authority to carry out the
purposes of the constitutional provisions relating to the interstate freedom
trade, commerce and intercourse. But, no such authority has been appointed so 
The country in its efforts to keep the whole country 
together and provide for egalitarian growth inherited and continued with the 
colonial bureaucratic steel framework. These are the all-India services
members of these services occupy top positions (or key posts) 
Centre and the states and serve them by turns. But, they are 
trained by the Centre. 
These services are controlled jointly by the Centre and the states. The
control lies with the Central government while the immediate control
In 1947, Indian Civil Service (ICS) was replaced by IAS 
IP) was replaced by IPS and recognised by the 
India Services. In 1966, the Indian Forest Service (IFS) was 
India Service.  
Article 312 of the Constitution authorises the Parliament to create new All
Services on the basis of a Rajya Sabha resolution to that effect. Each of these 
India services, irrespective of their division among different states, 
Indian Constitution tries to harbour within itself 
despite the tilt towards Centre. 
(i) The Parliament can provide for the adjudication of any dispute or complaint 
inter-state river 
State Council to 
investigate and discuss subject of common interest between the Centre and the 
(iii) Full faith and credit is to be given throughout the territory of India to public 
The Parliament can appoint an appropriate authority to carry out the 
purposes of the constitutional provisions relating to the interstate freedom of 
appointed so 
The country in its efforts to keep the whole country 
together and provide for egalitarian growth inherited and continued with the 
India services—IAS, 
members of these services occupy top positions (or key posts) 
Centre and the states and serve them by turns. But, they are 
These services are controlled jointly by the Centre and the states. The ultimate 
control lies with the Central government while the immediate control vests with 
In 1947, Indian Civil Service (ICS) was replaced by IAS 
recognised by the 
India Services. In 1966, the Indian Forest Service (IFS) was 
Parliament to create new All-India 
Each of these 
different states, 
 
www.YouTube.com/SleepyClasses
form a single service with common rights and status and
throughout the country.  
A unified administrative system
for the following reasons: 
(i) they help in maintaining high standard of
as well as in the states; 
(ii) they help to ensure
the country; 
(iii) they facilitate liaison, cooperation, coordination and joint action on the 
issues of common interest between the Centre and the states.
Judiciary and Centre-State relations:
no dual system of administration of
established an integrated judicial
the state high courts below it.
the President in consultation with the Chief Justice of India and the governor of 
the state. 
They can also be transferred and removed by the P
establish a common high court for two or more states.
Maharashtra and Goa or Punjab and Haryana have a common
Supreme Court plays the role of mediator and umpire for disputes between 
Centre and states and amongst states themselves as part of its origina
jurisdiction.  
Financial relations: Articles 268 to 293 in
with Centre–state financial relations. Besides these, there are other provisions 
dealing with the same subject.
of taxation in this regard as provided by the Constitution:
• The Parliament has exclusive power to levy taxes on subjects 
enumerated in the Union List 
• The state legislature has exclusive power to levy taxes on subjects
enumerated in the State List
 
 
www.YouTube.com/SleepyClasses 
www.SleepyClasses.com 
form a single service with common rights and status and uniform scales of pay 
A unified administrative system led by All India Services was seen necessary 
they help in maintaining high standard of administration in the Centre 
as well as in the states;  
they help to ensure uniformity of the administrative system t
facilitate liaison, cooperation, coordination and joint action on the 
common interest between the Centre and the states.
State relations: Though India has a dual polity, there is 
no dual system of administration of justice. The Constitution, on the 
established an integrated judicial system with the Supreme Court at the top and 
the state high courts below it. The judges of a state high court are appointed by 
consultation with the Chief Justice of India and the governor of 
transferred and removed by the President. The Parliament can 
establish a common high court for two or more states. For example, 
oa or Punjab and Haryana have a common high court.
Supreme Court plays the role of mediator and umpire for disputes between 
Centre and states and amongst states themselves as part of its origina
Articles 268 to 293 in Part XII of the Constitution deal 
financial relations. Besides these, there are other provisions 
same subject. It is important to look at the allocation of powers 
of taxation in this regard as provided by the Constitution: 
• The Parliament has exclusive power to levy taxes on subjects 
in the Union List  
• The state legislature has exclusive power to levy taxes on subjects
enumerated in the State List 
uniform scales of pay 
was seen necessary 
administration in the Centre 
uniformity of the administrative system throughout 
facilitate liaison, cooperation, coordination and joint action on the 
common interest between the Centre and the states. 
Though India has a dual polity, there is 
 other hand, 
system with the Supreme Court at the top and 
are appointed by 
consultation with the Chief Justice of India and the governor of 
The Parliament can 
For example, 
high court. The 
Supreme Court plays the role of mediator and umpire for disputes between 
Centre and states and amongst states themselves as part of its original 
Part XII of the Constitution deal 
financial relations. Besides these, there are other provisions 
It is important to look at the allocation of powers 
• The Parliament has exclusive power to levy taxes on subjects 
• The state legislature has exclusive power to levy taxes on subjects 
 
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• Both the Parliament and the state legislature can levy taxes on subjects
enumerated in the Concurrent List 
• The residuary power of taxation (that is, the power to impose taxes not
enumerated in any of the three lists) is vested in the Parliament. Under 
this provision, the Parliament has imposed gift tax, wealth tax and 
expenditure tax. 
The Constitution also draws a distinction between the power to levy and
a tax and the power to appropriate the proceeds of the tax so levied
collected. For example, the income
its proceeds are distributed between the Centre and the states.
With the coming in of GST by the 101
the entire gamut of these financial relations was revoluti
pertinent to study the financia
GST was considered to be a giant leap from the colonial legacy tax system to 
one more suited to the needs of d
today. It defines a new vision of federalism where the tangles between the 
Union and state governments in exercise of their taxation powers give way to 
collective and harmonious tango.
The former tax system was arch
confined to goods. The taxation of services was not even contemplated until 
1994 when service tax was introduced under the general residual Entry 97 in the 
Union List (88
th
 CAA- Article 268
and consumption and on the basis of both origin and destination, resulting in 
significant cascading and shrinking of the GDP pie.
GST is an Indirect Tax which has replaced many Indirect Taxes in India. The 
Goods and Service Tax Act was passed in the Parliament on 
The Act came into effect on 1st July 2017; Goods & Services Tax Law in India 
is a comprehensive, multi-stage, destination
value addition.  
 
 
 
www.YouTube.com/SleepyClasses 
www.SleepyClasses.com 
• Both the Parliament and the state legislature can levy taxes on subjects
merated in the Concurrent List  
• The residuary power of taxation (that is, the power to impose taxes not
of the three lists) is vested in the Parliament. Under 
provision, the Parliament has imposed gift tax, wealth tax and 
Constitution also draws a distinction between the power to levy and
a tax and the power to appropriate the proceeds of the tax so levied
collected. For example, the income-tax is levied and collected by the
its proceeds are distributed between the Centre and the states. 
With the coming in of GST by the 101
st
 Constitutional Amendment Act in 2017, 
the entire gamut of these financial relations was revolutionised and it is 
pertinent to study the financial relations in the wake of these changes. 
GST was considered to be a giant leap from the colonial legacy tax system to 
one more suited to the needs of dynamic and vibrant economy that India is 
today. It defines a new vision of federalism where the tangles between the 
Union and state governments in exercise of their taxation powers give way to 
collective and harmonious tango. 
The former tax system was archaic and provided for narrow taxes, largely 
confined to goods. The taxation of services was not even contemplated until 
1994 when service tax was introduced under the general residual Entry 97 in the 
Article 268-A). Taxes are imposed on both production 
umption and on the basis of both origin and destination, resulting in 
significant cascading and shrinking of the GDP pie. 
GST is an Indirect Tax which has replaced many Indirect Taxes in India. The 
Goods and Service Tax Act was passed in the Parliament on 29th March 2017. 
The Act came into effect on 1st July 2017; Goods & Services Tax Law in India 
stage, destination-based tax that is levied on every 
• Both the Parliament and the state legislature can levy taxes on subjects 
• The residuary power of taxation (that is, the power to impose taxes not 
of the three lists) is vested in the Parliament. Under 
provision, the Parliament has imposed gift tax, wealth tax and 
Constitution also draws a distinction between the power to levy and collect 
a tax and the power to appropriate the proceeds of the tax so levied and 
tax is levied and collected by the Centre but 
Constitutional Amendment Act in 2017, 
onised and it is 
l relations in the wake of these changes.  
GST was considered to be a giant leap from the colonial legacy tax system to 
ynamic and vibrant economy that India is 
today. It defines a new vision of federalism where the tangles between the 
Union and state governments in exercise of their taxation powers give way to 
aic and provided for narrow taxes, largely 
confined to goods. The taxation of services was not even contemplated until 
1994 when service tax was introduced under the general residual Entry 97 in the 
. Taxes are imposed on both production 
umption and on the basis of both origin and destination, resulting in 
GST is an Indirect Tax which has replaced many Indirect Taxes in India. The 
29th March 2017. 
The Act came into effect on 1st July 2017; Goods & Services Tax Law in India 
based tax that is levied on every 
 
www.YouTube.com/SleepyClasses
Features: 
(i) It applies to both goods and
(ii) It applies to the full supply chain and by way of sale or lease or any 
other arrangement 
(iii) GST applies only on a destination, rather than origin, basis
(iv) It can be levied on a given base of both the Centre and the
concurrently  (Earlier, the taxation powers of the centre and the states 
were mutually exclusive
(v) No tax can be applied to impede the free flow of goods and services in 
the common market of India 
(vi) GST in India is not a single national tax but 
states taxes (SGSTs), seven Union Territories taxes, one Central GST 
(CGST) and the integrated GST (IGST) on interstate supplies 
harmonised to look like a single tax
GST Council: The task of designing GST was assigned to the GST Council, a 
collective forum of state and central governments. The council’s decisions will 
require three-fourths majority and the Centre will have weightage of one
of the votes.  
The Council decides important aspects of the tax, including the base rates, 
allocation of tax base among the states, tax exemption, administrative 
architecture and compliance procedures 
GST is governed by the GST Council. Article 279 (1) of the amended Indian 
Constitution states that the GST Council has to be constituted by the President 
within 60 days of the commencement of the Article 279A
According to the article, GST Council will be a
the States. It consists of the following members:
? The Union Finance Ministe
? As a member, the Union Minister of State will be in charge of Revenue of 
Finance 
 
 
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www.SleepyClasses.com 
It applies to both goods and services and any mixture of the two
It applies to the full supply chain and by way of sale or lease or any 
other arrangement  
GST applies only on a destination, rather than origin, basis 
It can be levied on a given base of both the Centre and the
Earlier, the taxation powers of the centre and the states 
were mutually exclusive) 
No tax can be applied to impede the free flow of goods and services in 
the common market of India  
GST in India is not a single national tax but a set of 38 taxes 
states taxes (SGSTs), seven Union Territories taxes, one Central GST 
(CGST) and the integrated GST (IGST) on interstate supplies 
harmonised to look like a single tax.  
The task of designing GST was assigned to the GST Council, a 
collective forum of state and central governments. The council’s decisions will 
fourths majority and the Centre will have weightage of one
The Council decides important aspects of the tax, including the base rates, 
tion of tax base among the states, tax exemption, administrative 
architecture and compliance procedures  
GST is governed by the GST Council. Article 279 (1) of the amended Indian 
Constitution states that the GST Council has to be constituted by the President 
within 60 days of the commencement of the Article 279A 
According to the article, GST Council will be a joint forum for the Centre and 
the States. It consists of the following members: 
Finance Minister will be the Chairperson 
As a member, the Union Minister of State will be in charge of Revenue of 
services and any mixture of the two 
It applies to the full supply chain and by way of sale or lease or any 
 
It can be levied on a given base of both the Centre and the states 
Earlier, the taxation powers of the centre and the states 
No tax can be applied to impede the free flow of goods and services in 
a set of 38 taxes — 29 
states taxes (SGSTs), seven Union Territories taxes, one Central GST 
(CGST) and the integrated GST (IGST) on interstate supplies — all 
The task of designing GST was assigned to the GST Council, a 
collective forum of state and central governments. The council’s decisions will 
fourths majority and the Centre will have weightage of one-third 
The Council decides important aspects of the tax, including the base rates, 
tion of tax base among the states, tax exemption, administrative 
GST is governed by the GST Council. Article 279 (1) of the amended Indian 
Constitution states that the GST Council has to be constituted by the President 
joint forum for the Centre and 
As a member, the Union Minister of State will be in charge of Revenue of 
Page 5


 
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Administrative relations: T
the foundations of ‘cooperative federalism
Some important provisions that aid the same include:
(i) The Parliament can provide for the adjudication of any dispute or
with respect to the use, distribution and control of waters of any
and river valley. 
(ii) The President can establ
investigate and discuss subject of common interest between the Centre and
states. Such a council was set up in 1990.
(iii) Full faith and credit is to be given throughout the territory of India to
acts, records and judicial proceedings of the Centre and every state.
(iv) The Parliament can appoint an appropriate authority to carry out the
purposes of the constitutional provisions relating to the interstate freedom
trade, commerce and intercour
far. 
All India Services: The country in its efforts to keep the whole country 
together and provide for egalitarian growth inherited and continued with the 
colonial bureaucratic steel framework. These are the 
IPS and IFS. The members of these services occupy top positions (or key posts) 
under both the Centre and the states and serve them by turns. But, they are 
recruited and trained by the Centre.
These services are controlled jointly by the Centre and the states. The
control lies with the Central government while the immediate control
the state governments. In 1947, Indian Civil Service (ICS) was replaced by IAS 
and the Indian Police (IP) was replaced by IPS and
Constitution as All-India Services. In 1966, the Indian Forest Service (IFS) was 
created as the third All-India Service. 
Article 312 of the Constitution authorises the
Services on the basis of a Rajya Sabha
three all-India services, irrespective of their division among
 
 
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www.SleepyClasses.com 
The Indian Constitution tries to harbour within itself 
cooperative federalism’ despite the tilt towards Centre. 
provisions that aid the same include: 
(i) The Parliament can provide for the adjudication of any dispute or
with respect to the use, distribution and control of waters of any inter
(ii) The President can establish (under Article 263) an Inter-State Council to
investigate and discuss subject of common interest between the Centre and
h a council was set up in 1990. 
(iii) Full faith and credit is to be given throughout the territory of India to
acts, records and judicial proceedings of the Centre and every state. 
The Parliament can appoint an appropriate authority to carry out the
purposes of the constitutional provisions relating to the interstate freedom
trade, commerce and intercourse. But, no such authority has been appointed so 
The country in its efforts to keep the whole country 
together and provide for egalitarian growth inherited and continued with the 
colonial bureaucratic steel framework. These are the all-India services
members of these services occupy top positions (or key posts) 
Centre and the states and serve them by turns. But, they are 
trained by the Centre. 
These services are controlled jointly by the Centre and the states. The
control lies with the Central government while the immediate control
In 1947, Indian Civil Service (ICS) was replaced by IAS 
IP) was replaced by IPS and recognised by the 
India Services. In 1966, the Indian Forest Service (IFS) was 
India Service.  
Article 312 of the Constitution authorises the Parliament to create new All
Services on the basis of a Rajya Sabha resolution to that effect. Each of these 
India services, irrespective of their division among different states, 
Indian Constitution tries to harbour within itself 
despite the tilt towards Centre. 
(i) The Parliament can provide for the adjudication of any dispute or complaint 
inter-state river 
State Council to 
investigate and discuss subject of common interest between the Centre and the 
(iii) Full faith and credit is to be given throughout the territory of India to public 
The Parliament can appoint an appropriate authority to carry out the 
purposes of the constitutional provisions relating to the interstate freedom of 
appointed so 
The country in its efforts to keep the whole country 
together and provide for egalitarian growth inherited and continued with the 
India services—IAS, 
members of these services occupy top positions (or key posts) 
Centre and the states and serve them by turns. But, they are 
These services are controlled jointly by the Centre and the states. The ultimate 
control lies with the Central government while the immediate control vests with 
In 1947, Indian Civil Service (ICS) was replaced by IAS 
recognised by the 
India Services. In 1966, the Indian Forest Service (IFS) was 
Parliament to create new All-India 
Each of these 
different states, 
 
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form a single service with common rights and status and
throughout the country.  
A unified administrative system
for the following reasons: 
(i) they help in maintaining high standard of
as well as in the states; 
(ii) they help to ensure
the country; 
(iii) they facilitate liaison, cooperation, coordination and joint action on the 
issues of common interest between the Centre and the states.
Judiciary and Centre-State relations:
no dual system of administration of
established an integrated judicial
the state high courts below it.
the President in consultation with the Chief Justice of India and the governor of 
the state. 
They can also be transferred and removed by the P
establish a common high court for two or more states.
Maharashtra and Goa or Punjab and Haryana have a common
Supreme Court plays the role of mediator and umpire for disputes between 
Centre and states and amongst states themselves as part of its origina
jurisdiction.  
Financial relations: Articles 268 to 293 in
with Centre–state financial relations. Besides these, there are other provisions 
dealing with the same subject.
of taxation in this regard as provided by the Constitution:
• The Parliament has exclusive power to levy taxes on subjects 
enumerated in the Union List 
• The state legislature has exclusive power to levy taxes on subjects
enumerated in the State List
 
 
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www.SleepyClasses.com 
form a single service with common rights and status and uniform scales of pay 
A unified administrative system led by All India Services was seen necessary 
they help in maintaining high standard of administration in the Centre 
as well as in the states;  
they help to ensure uniformity of the administrative system t
facilitate liaison, cooperation, coordination and joint action on the 
common interest between the Centre and the states.
State relations: Though India has a dual polity, there is 
no dual system of administration of justice. The Constitution, on the 
established an integrated judicial system with the Supreme Court at the top and 
the state high courts below it. The judges of a state high court are appointed by 
consultation with the Chief Justice of India and the governor of 
transferred and removed by the President. The Parliament can 
establish a common high court for two or more states. For example, 
oa or Punjab and Haryana have a common high court.
Supreme Court plays the role of mediator and umpire for disputes between 
Centre and states and amongst states themselves as part of its origina
Articles 268 to 293 in Part XII of the Constitution deal 
financial relations. Besides these, there are other provisions 
same subject. It is important to look at the allocation of powers 
of taxation in this regard as provided by the Constitution: 
• The Parliament has exclusive power to levy taxes on subjects 
in the Union List  
• The state legislature has exclusive power to levy taxes on subjects
enumerated in the State List 
uniform scales of pay 
was seen necessary 
administration in the Centre 
uniformity of the administrative system throughout 
facilitate liaison, cooperation, coordination and joint action on the 
common interest between the Centre and the states. 
Though India has a dual polity, there is 
 other hand, 
system with the Supreme Court at the top and 
are appointed by 
consultation with the Chief Justice of India and the governor of 
The Parliament can 
For example, 
high court. The 
Supreme Court plays the role of mediator and umpire for disputes between 
Centre and states and amongst states themselves as part of its original 
Part XII of the Constitution deal 
financial relations. Besides these, there are other provisions 
It is important to look at the allocation of powers 
• The Parliament has exclusive power to levy taxes on subjects 
• The state legislature has exclusive power to levy taxes on subjects 
 
www.YouTube.com/SleepyClasses
• Both the Parliament and the state legislature can levy taxes on subjects
enumerated in the Concurrent List 
• The residuary power of taxation (that is, the power to impose taxes not
enumerated in any of the three lists) is vested in the Parliament. Under 
this provision, the Parliament has imposed gift tax, wealth tax and 
expenditure tax. 
The Constitution also draws a distinction between the power to levy and
a tax and the power to appropriate the proceeds of the tax so levied
collected. For example, the income
its proceeds are distributed between the Centre and the states.
With the coming in of GST by the 101
the entire gamut of these financial relations was revoluti
pertinent to study the financia
GST was considered to be a giant leap from the colonial legacy tax system to 
one more suited to the needs of d
today. It defines a new vision of federalism where the tangles between the 
Union and state governments in exercise of their taxation powers give way to 
collective and harmonious tango.
The former tax system was arch
confined to goods. The taxation of services was not even contemplated until 
1994 when service tax was introduced under the general residual Entry 97 in the 
Union List (88
th
 CAA- Article 268
and consumption and on the basis of both origin and destination, resulting in 
significant cascading and shrinking of the GDP pie.
GST is an Indirect Tax which has replaced many Indirect Taxes in India. The 
Goods and Service Tax Act was passed in the Parliament on 
The Act came into effect on 1st July 2017; Goods & Services Tax Law in India 
is a comprehensive, multi-stage, destination
value addition.  
 
 
 
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www.SleepyClasses.com 
• Both the Parliament and the state legislature can levy taxes on subjects
merated in the Concurrent List  
• The residuary power of taxation (that is, the power to impose taxes not
of the three lists) is vested in the Parliament. Under 
provision, the Parliament has imposed gift tax, wealth tax and 
Constitution also draws a distinction between the power to levy and
a tax and the power to appropriate the proceeds of the tax so levied
collected. For example, the income-tax is levied and collected by the
its proceeds are distributed between the Centre and the states. 
With the coming in of GST by the 101
st
 Constitutional Amendment Act in 2017, 
the entire gamut of these financial relations was revolutionised and it is 
pertinent to study the financial relations in the wake of these changes. 
GST was considered to be a giant leap from the colonial legacy tax system to 
one more suited to the needs of dynamic and vibrant economy that India is 
today. It defines a new vision of federalism where the tangles between the 
Union and state governments in exercise of their taxation powers give way to 
collective and harmonious tango. 
The former tax system was archaic and provided for narrow taxes, largely 
confined to goods. The taxation of services was not even contemplated until 
1994 when service tax was introduced under the general residual Entry 97 in the 
Article 268-A). Taxes are imposed on both production 
umption and on the basis of both origin and destination, resulting in 
significant cascading and shrinking of the GDP pie. 
GST is an Indirect Tax which has replaced many Indirect Taxes in India. The 
Goods and Service Tax Act was passed in the Parliament on 29th March 2017. 
The Act came into effect on 1st July 2017; Goods & Services Tax Law in India 
stage, destination-based tax that is levied on every 
• Both the Parliament and the state legislature can levy taxes on subjects 
• The residuary power of taxation (that is, the power to impose taxes not 
of the three lists) is vested in the Parliament. Under 
provision, the Parliament has imposed gift tax, wealth tax and 
Constitution also draws a distinction between the power to levy and collect 
a tax and the power to appropriate the proceeds of the tax so levied and 
tax is levied and collected by the Centre but 
Constitutional Amendment Act in 2017, 
onised and it is 
l relations in the wake of these changes.  
GST was considered to be a giant leap from the colonial legacy tax system to 
ynamic and vibrant economy that India is 
today. It defines a new vision of federalism where the tangles between the 
Union and state governments in exercise of their taxation powers give way to 
aic and provided for narrow taxes, largely 
confined to goods. The taxation of services was not even contemplated until 
1994 when service tax was introduced under the general residual Entry 97 in the 
. Taxes are imposed on both production 
umption and on the basis of both origin and destination, resulting in 
GST is an Indirect Tax which has replaced many Indirect Taxes in India. The 
29th March 2017. 
The Act came into effect on 1st July 2017; Goods & Services Tax Law in India 
based tax that is levied on every 
 
www.YouTube.com/SleepyClasses
Features: 
(i) It applies to both goods and
(ii) It applies to the full supply chain and by way of sale or lease or any 
other arrangement 
(iii) GST applies only on a destination, rather than origin, basis
(iv) It can be levied on a given base of both the Centre and the
concurrently  (Earlier, the taxation powers of the centre and the states 
were mutually exclusive
(v) No tax can be applied to impede the free flow of goods and services in 
the common market of India 
(vi) GST in India is not a single national tax but 
states taxes (SGSTs), seven Union Territories taxes, one Central GST 
(CGST) and the integrated GST (IGST) on interstate supplies 
harmonised to look like a single tax
GST Council: The task of designing GST was assigned to the GST Council, a 
collective forum of state and central governments. The council’s decisions will 
require three-fourths majority and the Centre will have weightage of one
of the votes.  
The Council decides important aspects of the tax, including the base rates, 
allocation of tax base among the states, tax exemption, administrative 
architecture and compliance procedures 
GST is governed by the GST Council. Article 279 (1) of the amended Indian 
Constitution states that the GST Council has to be constituted by the President 
within 60 days of the commencement of the Article 279A
According to the article, GST Council will be a
the States. It consists of the following members:
? The Union Finance Ministe
? As a member, the Union Minister of State will be in charge of Revenue of 
Finance 
 
 
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www.SleepyClasses.com 
It applies to both goods and services and any mixture of the two
It applies to the full supply chain and by way of sale or lease or any 
other arrangement  
GST applies only on a destination, rather than origin, basis 
It can be levied on a given base of both the Centre and the
Earlier, the taxation powers of the centre and the states 
were mutually exclusive) 
No tax can be applied to impede the free flow of goods and services in 
the common market of India  
GST in India is not a single national tax but a set of 38 taxes 
states taxes (SGSTs), seven Union Territories taxes, one Central GST 
(CGST) and the integrated GST (IGST) on interstate supplies 
harmonised to look like a single tax.  
The task of designing GST was assigned to the GST Council, a 
collective forum of state and central governments. The council’s decisions will 
fourths majority and the Centre will have weightage of one
The Council decides important aspects of the tax, including the base rates, 
tion of tax base among the states, tax exemption, administrative 
architecture and compliance procedures  
GST is governed by the GST Council. Article 279 (1) of the amended Indian 
Constitution states that the GST Council has to be constituted by the President 
within 60 days of the commencement of the Article 279A 
According to the article, GST Council will be a joint forum for the Centre and 
the States. It consists of the following members: 
Finance Minister will be the Chairperson 
As a member, the Union Minister of State will be in charge of Revenue of 
services and any mixture of the two 
It applies to the full supply chain and by way of sale or lease or any 
 
It can be levied on a given base of both the Centre and the states 
Earlier, the taxation powers of the centre and the states 
No tax can be applied to impede the free flow of goods and services in 
a set of 38 taxes — 29 
states taxes (SGSTs), seven Union Territories taxes, one Central GST 
(CGST) and the integrated GST (IGST) on interstate supplies — all 
The task of designing GST was assigned to the GST Council, a 
collective forum of state and central governments. The council’s decisions will 
fourths majority and the Centre will have weightage of one-third 
The Council decides important aspects of the tax, including the base rates, 
tion of tax base among the states, tax exemption, administrative 
GST is governed by the GST Council. Article 279 (1) of the amended Indian 
Constitution states that the GST Council has to be constituted by the President 
joint forum for the Centre and 
As a member, the Union Minister of State will be in charge of Revenue of 
 
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? The Minister in charge
nominated by each State government, as members
GST Council is an apex member committee to modify, reconcile or to procure 
any law or act or regulation based on the context of goods and services tax in 
India. The council is headed by the union finance minister assisted with the 
finance minister of all the states of India. The GST council is responsible for 
any revision or enactment of rule or any rate changes of the goods and services 
in India. 
Consumer Welfare Trust: A separate fund has 
under the GST laws which would be utilised for the welfare 
the country. The Consumer Welfare Fund Rules were framed and notified in the 
Gazette of India in 1992, which have been incorporated in Consumer Welfare 
Fund Rule 97 of the CGST Rules, 2017.  Consumer Welfare F
setup under section 57 of the CGST Act, 2017.
not claim the amount due or the recipient is not identifiable, in such conditions, 
the amount recovered from the taxpayer is deposited in the consumer welfare 
fund.  
Indirect Tax Laws before GST:
state and centre. States mainly collected taxes in the form of Value Added Tax 
(VAT). Every state had a different set of rules and regulations. Intersta
goods was taxed by the Centre. CST (Central State Tax) was applicable in case 
of interstate sale of goods.   
Other than above there were many indirect taxes like entertainment tax, octroi 
and local tax that was levied by state and centre. This l
of taxes levied by both state and centre. For example, when goods were 
manufactured and sold, excise duty was charged by the centre. Over and above 
Excise Duty, VAT was also charged by the State. This le
known as the cascading effect of taxes.
The following is the list of indirect taxes in the pre
• Central Excise Duty 
 
 
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www.SleepyClasses.com 
The Minister in charge of finance or taxation or any other Minister 
nominated by each State government, as members 
GST Council is an apex member committee to modify, reconcile or to procure 
any law or act or regulation based on the context of goods and services tax in 
council is headed by the union finance minister assisted with the 
finance minister of all the states of India. The GST council is responsible for 
any revision or enactment of rule or any rate changes of the goods and services 
A separate fund has been created by the government 
under the GST laws which would be utilised for the welfare of the consumer in 
The Consumer Welfare Fund Rules were framed and notified in the 
Gazette of India in 1992, which have been incorporated in Consumer Welfare 
Fund Rule 97 of the CGST Rules, 2017.  Consumer Welfare Fund has been 
setup under section 57 of the CGST Act, 2017. When the eligible person does 
not claim the amount due or the recipient is not identifiable, in such conditions, 
from the taxpayer is deposited in the consumer welfare 
Indirect Tax Laws before GST: There were many indirect taxes levied by both 
state and centre. States mainly collected taxes in the form of Value Added Tax 
(VAT). Every state had a different set of rules and regulations. Intersta
goods was taxed by the Centre. CST (Central State Tax) was applicable in case 
 
Other than above there were many indirect taxes like entertainment tax, octroi 
and local tax that was levied by state and centre. This led to a lot of overlapping 
of taxes levied by both state and centre. For example, when goods were 
manufactured and sold, excise duty was charged by the centre. Over and above 
o charged by the State. This led to a tax on tax also 
own as the cascading effect of taxes. 
The following is the list of indirect taxes in the pre-GST regime: 
of finance or taxation or any other Minister 
GST Council is an apex member committee to modify, reconcile or to procure 
any law or act or regulation based on the context of goods and services tax in 
council is headed by the union finance minister assisted with the 
finance minister of all the states of India. The GST council is responsible for 
any revision or enactment of rule or any rate changes of the goods and services 
been created by the government 
of the consumer in 
The Consumer Welfare Fund Rules were framed and notified in the 
Gazette of India in 1992, which have been incorporated in Consumer Welfare 
und has been 
When the eligible person does 
not claim the amount due or the recipient is not identifiable, in such conditions, 
from the taxpayer is deposited in the consumer welfare 
There were many indirect taxes levied by both 
state and centre. States mainly collected taxes in the form of Value Added Tax 
(VAT). Every state had a different set of rules and regulations. Interstate sale of 
goods was taxed by the Centre. CST (Central State Tax) was applicable in case 
Other than above there were many indirect taxes like entertainment tax, octroi 
ed to a lot of overlapping 
of taxes levied by both state and centre. For example, when goods were 
manufactured and sold, excise duty was charged by the centre. Over and above 
d to a tax on tax also