Question

Gst and its impact on cooperative federalism

Answer 1

29 March 2017 must be recorded as one of the most significant days in the history of federalism in India. By passing the four bills relating to different aspects of the Goods and Services Tax (GST), the Lok Sabha has, perhaps for the first time put limitations on its own powers, in the interest of federalism, and signed off on a pooling of sovereignty in taxation matters with 32 state and Union territory legislatures.

In turn, over the next couple of months all the state legislatures will share their powers of taxation. In the process of sharing and jointly exercising the powers to tax, the GST Council will be born as India’s first truly federal institution.

Neither the Parliament on its own nor the state legislatures individually or jointly can override the collective recommendations of the GST Council. In other words, the GST regime has created an institutional and Constitutional framework for cooperative federalism in the arena of indirect taxation.

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In the GST regime, the Union and the states will be vested with concurrent powers to levy GST on intra-state supply of goods and services and the union will be vested with the exclusive power to levy GST on the supply of goods and services in the course of inter-state trade or commerce which includes supply in the course of imports into the territory of India.

Answer 2

Federalism is a political ideology of compound government structure which includes it's a national government and many regional government in the same political environment.

GST or the GOODS AND SERVICE TAX was regulated in the 2017 to unify different taxes into a single tax amount.This GST also helped to simplify the taxation process between the central government and regional governments which increased the hospitality in our national federalism.