Entry 50 of the State List is a provision found in List II (State List) of the Seventh Schedule to the Constitution of India. This entry grants State Legislatures the power to make laws concerning "Taxes on mineral rights subject to any limitations imposed by Parliament by law relating to mineral development". The concept's origin can be traced to the Government of India Act, 1935, which established a similar division of legislative powers between the central and provincial governments.
The entry works by giving states the fiscal autonomy to derive revenue through taxation on mineral rights within their territorial boundaries. However, the phrase "subject to any limitations imposed by Parliament" means this power is not absolute, establishing a framework of conditional legislative competence. This provision is closely connected to Entry 54 of the Union List (List I), which grants Parliament the overriding power to regulate mines and mineral development when declared expedient in the public interest. The interplay between these two entries is a key aspect of India's fiscal federalism.
An informed reader should also know about Entry 49 of the State List, which concerns "Taxes on lands and buildings," as the Supreme Court has held that mineral-bearing land can fall under its scope. In 2024, the Supreme Court, in Mineral Area Development Authority v. Steel Authority of India Ltd., affirmed the States' constitutional authority to tax mineral rights and distinguished royalty from tax. More recently, a 2026 amendment introduced Section 9D, which restricts States from imposing taxes, cesses, or other levies on mineral rights or mineral-bearing lands unless they comply with conditions or restrictions prescribed by the Central Government. This amendment has intensified the constitutional debate over the extent to which Parliament can limit the State's taxation powers under Entry 50.