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Constitution of India · Part XI: Relations Between the Union and the States · Distribution of Legislative Powers

Article 246: Subject-matter of laws made by Parliament and by the Legislatures of States

In plain words

Parliament alone can make laws on matters in List I of the Seventh Schedule (the Union List). Both Parliament and State Legislatures can make laws on matters in List III (the Concurrent List). State Legislatures alone can make laws on matters in List II (the State List), subject to the Union List and Concurrent List rules.

  • Parliament can make laws on any matter, even in the State List, for parts of India not included in a State.

A simplified explanation, prepared with AI assistance from the official text below and checked automatically against it for numbers and cross-references. The official text is the law and prevails over this summary. Not legal advice.

Read the in-depth explanation, with key Supreme Court rulings ↓

Official text

(1) Notwithstanding anything in clauses (2) and (3), Parliament has exclusive power to make laws with respect to any of the matters enumerated in List I in the Seventh Schedule (in this Constitution referred to as the “Union List”).

(2) Notwithstanding anything in clause (3), Parliament, and, subject to clause (1), the Legislature of any State *** also, have power to make laws with respect to any of the matters enumerated in List III in the Seventh Schedule (in this Constitution referred to as the “Concurrent List”).

(3) Subject to clauses (1) and (2), the Legislature of any State *** has exclusive power to make laws for such State or any part thereof with respect to any of the matters enumerated in List II in the Seventh Schedule (in this Constitution referred to as the “State List”).

(4) Parliament has power to make laws with respect to any matter for any part of the territory of India not included [in a State] notwithstanding that such matter is a matter enumerated in the State List.

Source: India Code (Legislative Department), the official text of the Constitution of India. As amended up to the Constitution (One Hundred and Sixth Amendment) Act, 2023. Text as on 10 September 2026. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.

Understanding this article

Article 246 divides legislative power between Parliament and the States through the three Lists of the Seventh Schedule. Parliament has exclusive power over the Union List, both share the Concurrent List, and the States have exclusive power over the State List, with Parliament's powers prevailing in case of overlap.

The hierarchy built into the clauses

ClauseListWho legislatesPriority
246(1)List I (Union)Parliament onlyPrevails over (2) and (3)
246(2)List III (Concurrent)Parliament and StatesPrevails over (3); conflicts resolved by Article 254
246(3)List II (State)States onlySubject to (1) and (2)
246(4)AnyParliament for areas outside StatesUnion territories

Pith and substance

Entries inevitably overlap. Courts ask what the law is really about, its true nature and character. If in pith and substance it falls in an entry the legislature can use, incidental encroachment on another List does not invalidate it. The doctrine comes from Privy Council cases under the Government of India Act, 1935, especially Prafulla Kumar Mukherjee (1947), which upheld a provincial money-lending law even though it touched promissory notes, a federal subject.

Other tools of interpretation

  • Entries are read broadly; each general word extends to ancillary and subsidiary matters.
  • Colourable legislation: a legislature cannot do indirectly what it cannot do directly.
  • Federal supremacy: where an irreconcilable conflict between a Union and a State entry remains, the Union entry prevails.
  • Residuary power over matters not in any List rests with Parliament (Article 248 and Entry 97 of List I).

Article 246 versus Article 254

If a Central law is under List I and a State law under List II, the question is one of legislative competence under Article 246, not repugnancy. Repugnancy under Article 254 arises only between laws in the Concurrent List. GST is now a special case under Article 246A.

Key Supreme Court rulings

  • Prafulla Kumar Mukherjee v. Bank of Commerce, Khulna AIR 1947 PC 60

    If an impugned law in pith and substance falls within an entry of the provincial list, the legislature's competence cannot be questioned because it incidentally touches a matter in the federal or concurrent list.

  • State of U.P. v. Lalta Prasad Vaish and Sons 2024 INSC 812

    A nine-judge Bench held, by majority, that Entry 8 of List II ('intoxicating liquors') is both industry-based and product-based, and covers everything from raw materials to consumption; States can therefore regulate industrial alcohol under it.

  • Nedumpilli Finance Co. Ltd. v. State of Kerala 2022 INSC 545

    Chapter III-B of the RBI Act is a complete code for NBFCs, traceable to List I; where the Central law is under List I and the State law under List II, repugnancy under Article 254 does not arise and Article 246(1) applies, so State money-lending laws cannot regulate RBI-registered NBFCs.

Common mistakes

  • Testing a List I versus List II conflict for repugnancy under Article 254; it is a competence question under Article 246.
  • Striking down a law for incidental overlap; ask what it is in pith and substance.
  • Forgetting that the Union List prevails where conflict cannot be reconciled.

Read with: Article 254 Constitution, Article 248 Constitution, Article 246A Constitution

Prepared with AI assistance as a study aid. Every ruling listed was checked against the Supreme Court's own judgments on this site, and quoted words appear in those judgments; linked names open the full judgment. Read the judgments themselves before relying on them. Not legal advice.

Supreme Court judgments citing the article 246