Maarg Manthan · Topic 22.3

Residuary Powers of Legislation (Article 248)

Indian Polity › Centre-State Relations · Topic 22.3

Article 248 vests the residuary power of legislation, including residuary taxation, in Parliament on the Canadian pattern, unlike the USA where it lies with the states; the Sarkaria Commission suggested moving non-tax residuary powers to the Concurrent List.

5 min read · UPSC Prelims · Polity · Centre-State Relations

At a Glance

What it is Power to legislate on matters not in any list
Article Article 248 (and entry 97 of the Union List)
Vested in Parliament
Includes Residuary taxes such as gift tax, wealth tax and expenditure tax
Exam link UPSC Prelims, Polity: Centre-State Relations

Where Does It Fit?

This is the third topic of the category on Centre-State Relations. Any federal constitution must settle who legislates on subjects that no list mentions. The Indian Constitution gives that power to Parliament.

What Article 248 Provides

The power to make laws with respect to residuary subjects, that is, the matters not enumerated in any of the three lists, is vested in Parliament. This residuary power includes the power to levy residuary taxes. Under this provision Parliament has imposed the gift tax, the wealth tax and the expenditure tax. In the Union List itself, the residuary subject appears as the final entry, and the power of taxation not mentioned in any list also belongs to Parliament.

Comparison with Other Constitutions

Constitution	Residuary powers with
USA	States
Australia	States
Canada	Centre (Federal)
Government of India Act, 1935	Governor-General of India, neither federal nor provincial legislature
India	Parliament

In the USA, only the powers of the Federal Government are enumerated in the Constitution, and the residuary powers are left to the states. The Australian Constitution followed the American pattern. In Canada there is a double enumeration, federal and provincial, with residuary powers vested in the Centre. The Government of India Act of 1935 gave residuary powers neither to the federal nor to the provincial legislature but to the Governor-General. In this respect, India follows the Canadian precedent, not the American.

Taxation Heads and Residuary Taxes

List	Tax entries	Example
Union List	13	Taxes on income other than agricultural, customs duties, corporation tax
State List	18	Land revenue, taxes on agricultural income, taxes on vehicles, tolls, professions
Concurrent List	None (except GST since 2016)	GST by Parliament and states
Residuary	Whatever is not enumerated	Gift tax, wealth tax, expenditure tax

The power to tax goes with the power to legislate, so the residuary power to legislate carries the residuary power to tax. A tax not enumerated in either list can be imposed only by Parliament, which is why gift, wealth and expenditure taxes were enacted by the Union. The 101st Amendment later brought GST into the concurrent field, a special exception to the rule that there are no tax entries in the Concurrent List.

Effect on the Federal Balance

The vesting of residuary powers in Parliament is one of the features that give India its strong Centre. The division of powers is highly in favour of the Centre because the Union List contains more subjects than the State List, the more important subjects are in the Union List, the Centre has overriding authority over the Concurrent List, and the residuary powers also lie with the Centre. Critics have therefore argued for transferring residuary powers to the states. The Rajamannar Committee (1969) recommended that residuary powers be allocated to the states; the West Bengal Memorandum (1977) suggested all subjects including the residuary should be with the states; and the Anandpur Sahib Resolution (1973) demanded that the entire residuary powers be vested in the states.

What the Commissions Recommended

Body	Recommendation on residuary powers
Rajamannar Committee (1969)	Residuary powers to be allocated to the states
Anandpur Sahib Resolution (1973)	Entire residuary powers vested in the states; Centre only defence, foreign affairs, communications and currency
West Bengal Memorandum (1977)	All subjects other than Centre’s limited list, including residuary, to the states
Sarkaria Commission (1988)	Residuary powers of taxation to remain with Parliament, while other residuary powers be placed in the Concurrent List

The Sarkaria suggestion is a middle path: keep taxation residuary with Parliament for fiscal reasons, but place the others in the Concurrent List where states also have a voice. The Central government implemented 180 of the 247 Sarkaria recommendations, but this one was not among them, and residuary powers remain with Parliament.

Why Is This Topic Important?

Comparison with USA and Canada Standard question
Residuary taxes Gift, wealth and expenditure taxes
Reform proposals Sarkaria and others

What Came Next?

The next topic covers Parliament’s power to legislate on State List matters in the national interest under Article 249.

Key People and Terms

Residuary powers Powers on subjects in no list
Double enumeration Separate lists for Centre and provinces
Gift tax Residuary tax imposed by Parliament
Article 248 Residuary legislation
Entry 97 Residuary entry in Union List

Exam Corner

Points to Remember

Residuary power: Parliament (Canadian pattern).
Includes residuary taxes.
USA and Australia: states.
1935 Act: Governor-General.

Do Not Confuse With

India and USA Centre versus states
1935 Act and Constitution Governor-General versus Parliament
Residuary taxation and other residuary powers Sarkaria split them

Memory Hook

What no list names, Parliament claims: gift, wealth and expenditure taxes.

Mains Angle

Questions on this topic usually ask about the Centre-heavy division. Use these points to add depth.

Canadian model Strong Centre
Demands for change Rajamannar and others
Sarkaria compromise Taxation versus others
Federal balance Union List dominance

A Question You May Face

An original practice question, not a past paper question.

“Who holds residuary legislative powers in India? How does this compare with other federations?”

How to Answer

Introduction Article 248.
Comparison USA, Canada.
Proposals Commissions.
Conclusion Strong Centre.

GS Relevance

Prelims: Indian Polity, federalism. GS Paper 2: Centre-State relations.

Frequently Asked Questions

Who has the residuary powers of legislation in India?

Under Article 248, the power to make laws on residuary subjects, those not enumerated in any of the three lists, is vested in Parliament. It includes the power to levy residuary taxes. This follows the Canadian model.

Which taxes has Parliament imposed under residuary powers?

Using its residuary power of taxation, Parliament has imposed the gift tax, the wealth tax and the expenditure tax, none of which is mentioned in the Union or State Lists. None of these appears in the lists.

How is the Indian position different from the USA?

In the USA only the powers of the Federal Government are enumerated and residuary powers are left to the states. India follows the Canadian precedent, in which the residuary powers are vested in the Centre.

What did the Sarkaria Commission recommend on residuary powers?

It recommended that residuary powers of taxation continue with Parliament, while the other residuary powers be placed in the Concurrent List, so that states also have a say in legislation on those matters. This was a compromise proposal.

Who held residuary powers under the Government of India Act, 1935?

The Act of 1935 gave residuary powers neither to the federal nor to the provincial legislature, but to the Governor-General of India. The Constitution replaced this with Parliament, following Canada. India changed this in the Constitution.

PYQ Practice — Statement Analysis

1 Residuary powers are vested in the states in India.

False

In Parliament.

2 Gift tax was imposed under the residuary power.

True

Along with wealth and expenditure taxes.

3 The Canadian model gives residuary powers to the provinces.