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State governments in India are the governments ruling over 28 states and 8 union territories of India and the head of the Council of Ministers in a state is the Chief Minister. Power is divided between the Union government and state governments. While the Union government handles defence, external affairs etc., the state government deals with internal security and other state issues. Income for the Union government is from customs duty, excise tax, income tax etc., while state government income comes from sales tax (VAT), stamp duty etc.; now these have been subsumed under the various components of the Goods and Services Tax
Each state has a legislative assembly. A state legislature that has one house – the State Legislative Assembly (Vidhan Sabha) – is a unicameral legislature.
A state legislature that has two houses – the State Legislative Assembly and State Legislative Council (Vidhan Parishad) – is a bicameral legislature. The Vidhan Sabha is the lower house and corresponds to the Lok Sabha while the Vidhan Parishad is the upper house and corresponds to the Rajya Sabha of the Parliament of India.
The Sarkaria Commission was set up to review the balance of power between states' and the Union governments. The Union government can dissolve a state government in favour of President's rule if necessary, subject to certain conditions, as ruled by the Supreme Court of India in S. R. Bommai v. Union of India. It is for 5 years only.
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