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Articles 256 to 306 of the Indian Constitution – The Structure of the Union Government

The Indian Constitution is a monumental document that not only defines the structure and powers of the Union Government but also sets the framework for harmonious relations between the Union and the States. Articles 256 to 306 primarily cover the distribution of powers, the interplay between the Union and the States in administration, trade and commerce regulations, as well as provisions for special circumstances.

This section is vital because it explains how governance functions in practice—beyond just making laws—and ensures that the country’s political and economic fabric remains unified despite its federal character.

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1. Administrative Relations Between the Union and the States (Articles 256–263)

• Article 256 – Obligation of States and the Union
  It requires that State governments ensure compliance with the laws made by Parliament. The Union can issue directions to ensure this compliance, promoting uniformity in administration.

• Article 257 – Control of the Union over States in Certain Cases
  States must exercise their executive powers without impeding the Union’s powers. This includes matters like communication, railways, and protection of Union property.

• Articles 258 & 258A – Delegation of Powers
  The President can entrust certain Union powers to State governments and, conversely, States can delegate their powers to the Union.

• Article 260 – Jurisdiction for Certain Territories Outside India
  The Government of India can undertake responsibilities in foreign territories with their consent.

• Article 263 – Inter-State Council
  Provides for the establishment of a council to discuss and investigate subjects of common interest between States or between States and the Union, preventing disputes through cooperative dialogue.

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2. Finance, Property, Contracts, and Suits (Articles 264–300A)

A. Distribution of Revenues (Articles 268–281)

These articles set the foundation for India’s fiscal federalism, ensuring that resources are fairly allocated between the Centre and the States.

• Article 268 – Duties Levied by the Union but Collected by the States (e.g., stamp duties).
• Article 269 – Taxes Levied and Collected by the Union but Assigned to the States (such as inter-state trade taxes).
• Article 270 – Taxes Levied and Collected by the Union and Distributed between Union and States (income tax, GST revenue sharing).
• Article 275 – Grants-in-Aid from the Union to certain States in need of financial assistance.
• Article 280 – Finance Commission – A constitutional body to recommend distribution of financial resources.

B. Property and Contracts (Articles 294–300A)

These provisions deal with the transfer of property from the colonial government to the Union and States, and clarify the Union and States’ rights to acquire, hold, and dispose of property.

• Article 294 – Succession to Property and Assets of the Government of India and Provinces.
• Article 298 – Executive Power to Carry on Trade – Both Union and States can engage in trade or business.
• Article 300A – Right to Property – No person shall be deprived of their property except by authority of law.

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3. Trade, Commerce, and Intercourse Within the Territory of India (Articles 301–307)

This part ensures the economic unity of India by preventing trade barriers between States.

• Article 301 – Freedom of Trade and Commerce throughout the country.
• Article 302 – Parliament’s Power to Impose Restrictions in the public interest.
• Article 303 – No Discrimination Between States in matters of trade, except under extraordinary conditions.
• Article 304 – State Powers to Impose Restrictions on trade within the State, provided they do not hinder national economic unity.
• Article 307 – Appointment of Authority to oversee trade and commerce disputes.

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4. Emergency Financial Provisions

While emergency powers are discussed in other parts of the Constitution, some financial control mechanisms here allow the Union to step in during economic crises to ensure stability and uninterrupted governance.

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Significance of Articles 256 to 306

This block of articles reflects India’s cooperative federalism—balancing the powers of the Union and the autonomy of the States. By detailing how laws are implemented, revenues are shared, and trade flows across the nation, they ensure that despite diversity in governance, India remains an integrated political and economic entity.

These provisions are also dynamic, adapting through constitutional amendments to address evolving needs, such as the introduction of GST or changes in property rights.

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