The Constitution determines the extent of sharing of power between the Union and the State Governments. The Seventh Schedule of the Indian Constitution delimits the subjects of each level of governmental jurisdiction, dividing them into three lists: the Union List containing subjects on which the Union Government has sole Jurisdiction. The State List containing subjects on which the State Government has sole Jurisdiction. The Concurrent List which includes subjects of common interest to both the Union Government as well as the State Governments and both have jurisdiction on these subjects. If their laws conflict with each other, the law made by the Union Government will prevail.

But there are certain subjects like laws related to computer software, that have developed after the constitution had been created. These subjects that do not fall under any of the three lists are known as ‘residuary subjects’ and the Union Government has the power to legislate on these subjects. This power is known as ‘residuary power’.