Article 248

Article 248 of the Constitution of India confers exclusive legislative power on Parliament to make laws with respect to matters not enumerated in the State List or the Concurrent List. This provision ensures that the Indian legislative framework remains adaptable and capable of addressing emerging issues not envisaged at the time of the Constitution’s framing. It is a cornerstone of India’s dynamic and evolving constitutional structure, enabling the Union to respond effectively to new developments in governance, technology, and public policy.

Constitutional Background and Purpose

The concept of residuary powers originates from the federal distribution of legislative authority. In federations such as India, legislative subjects are divided between the Union and the States through the Seventh Schedule of the Constitution. However, it is practically impossible to foresee all future subjects that may require legislation. Article 248, therefore, serves as a constitutional safeguard, ensuring that any matter not mentioned in the existing legislative lists remains within Parliament’s competence.
This Article appears in Part XI of the Constitution, which deals with Relations between the Union and the States. It reflects the framers’ intention to maintain the supremacy of Parliament in unforeseen or emerging areas, thereby preserving national coherence and uniformity in law-making.

Text and Scope of Article 248

Article 248 reads:

1. Parliament has exclusive power to make any law with respect to any matter not enumerated in the Concurrent List or State List.
2. Such power shall include the power of making any law imposing a tax not mentioned in either of those Lists.

The language of the Article makes it clear that residuary powers are vested solely in Parliament and not in State Legislatures. This includes both non-tax and tax-related matters, thereby ensuring that new fields of legislation fall within the Union’s jurisdiction.

Nature and Extent of Residuary Powers

The residuary powers under Article 248 are both comprehensive and exclusive. Their key features include:

• Exclusivity: Only Parliament can legislate on residuary subjects; States have no concurrent authority.
• Inclusivity: The power extends to all matters not listed in the State or Concurrent Lists, including new technological or social phenomena.
• Taxation Authority: Parliament can impose taxes on subjects not mentioned in any legislative list, providing flexibility for fiscal innovation.
• Dynamic Character: The provision ensures that the constitutional framework can adapt to new circumstances without frequent amendments.

These powers allow the central government to deal with issues of national importance that may emerge over time, such as space exploration, digital governance, or data protection—areas that were not foreseen in 1950.

Constitutional Context and Relationship with Article 246

Article 246 establishes the threefold distribution of legislative powers between the Union and the States:

• List I (Union List): Matters on which only Parliament can legislate.
• List II (State List): Matters on which only States can legislate.
• List III (Concurrent List): Matters on which both Parliament and States can legislate concurrently.

When a legislative subject does not fall under any of these lists, Article 248 comes into effect. Thus, while Article 246 demarcates the enumerated powers, Article 248 acts as a residuary clause filling the gaps in legislative competence.
This arrangement contrasts with certain other federations—such as the United States—where residuary powers are assigned to the States. In India, however, the framers deliberately vested these powers in Parliament to ensure a strong central authority and maintain national unity.

Taxation Powers under Article 248(2)

Clause (2) explicitly provides Parliament with the power to impose taxes on matters not mentioned in the Union, State, or Concurrent Lists. This clause ensures flexibility in India’s fiscal system, enabling Parliament to introduce new forms of taxation as economic structures evolve.
For example:

• The Service Tax, introduced in the 1990s, was based on Parliament’s residuary powers before the advent of the Goods and Services Tax (GST) regime.
• The Carbon Tax and potential future taxes related to digital transactions or environmental impact could also derive authority from Article 248.

This flexibility allows the central government to respond effectively to emerging fiscal and economic challenges.

Judicial Interpretation

The Supreme Court of India has clarified the scope and operation of Article 248 through several landmark judgments:

• K.C. Gajapati Narayan Deo v. State of Orissa (1953): The Court recognised that Parliament’s residuary powers are broad and include all subjects not enumerated elsewhere, reaffirming the principle of Union supremacy in legislative matters.
• State of West Bengal v. Union of India (1963): The Court upheld the Union’s legislative competence over residuary matters, affirming that the Constitution grants Parliament ultimate authority to legislate in areas not allocated to the States.
• Union of India v. H.S. Dhillon (1972): The Court held that when a subject cannot be located in any of the three lists, Parliament’s competence under Article 248 automatically applies. The Court also emphasised that taxation powers under Clause (2) are integral to residuary authority.

Through these decisions, the judiciary has consistently reinforced Parliament’s plenary powers in residuary matters, ensuring that legislative gaps do not hinder governance.

Legislative Examples

Over time, Parliament has exercised its residuary powers to enact laws addressing contemporary challenges and new domains of public interest, including:

• The Information Technology Act, 2000 – regulating cyber activities, e-commerce, and data protection.
• The Competition Act, 2002 – ensuring fair trade and competition in markets.
• The Biological Diversity Act, 2002 – addressing environmental conservation and genetic resource management.
• The Goods and Services Tax (Compensation to States) Act, 2017 – reflecting Parliament’s fiscal flexibility under the residuary clause.

Such legislation demonstrates the enduring relevance of Article 248 in enabling the Union to legislate on modern and emerging issues.

Relationship with Other Constitutional Articles

Article 248 operates in coordination with several other provisions that regulate the balance of legislative power between the Union and the States:

• Article 249 – Allows Parliament to legislate on matters in the State List in the national interest if approved by the Rajya Sabha.
• Article 250 – Empowers Parliament to legislate on State subjects during a national emergency.
• Article 252 – Enables Parliament to legislate on State subjects if two or more States consent.
• Article 246A – Grants concurrent power for the imposition of Goods and Services Tax (GST).

Together, these Articles ensure both flexibility and balance within India’s quasi-federal structure.

Significance of Article 248

Article 248 is fundamental to maintaining a dynamic and adaptable legislative framework in India. Its importance can be summarised as follows:

• Flexibility: It enables Parliament to address new and unforeseen matters without constitutional amendments.
• National Integration: Ensures that legislative uniformity is maintained in subjects of national importance.
• Fiscal Innovation: Allows the central government to design new taxation mechanisms as the economy evolves.
• Legal Completeness: Prevents legislative voids by ensuring that every possible subject falls within some legislative competence.
• Strengthened Federal Unity: Reinforces the supremacy of Parliament in matters requiring centralised governance.

Limitations and Constitutional Safeguards

While Article 248 grants Parliament wide powers, these are not absolute. They are subject to the overarching provisions of the Constitution, including:

• Fundamental Rights (Part III): Parliament cannot enact residuary laws that violate citizens’ fundamental rights.
• Judicial Review: All laws made under Article 248 are subject to judicial scrutiny by the Supreme Court and High Courts.
• Basic Structure Doctrine: Residuary legislation cannot undermine the fundamental principles forming the basic structure of the Constitution.

These limitations ensure that the exercise of residuary powers remains consistent with India’s democratic and constitutional ethos.