Understanding GST & its Implications on Fiscal Federalism in India : A Constitutional Perspective Study

The Goods & Services Tax (GST) was introduced by the government under the 101st Amendment to bring into order a new indirect tax regime for collection of tax with respect to the supply of goods and services. After more than a year of coming into force, major changes in the distribution of taxes between the Centre and States have been brought about by this enactment. It has undisputedly become the foundation stone of the new fiscal policy of the country. In this paper, the authors aim to provide a general understanding of the GST Model and list out the merits and demerits which the present structure has brought about in the taxation policy. Secondly, it discusses the impact of GST on the division of powers between the Centre and the States and how it has impacted the federal structure of the country. Lastly, the paper discusses the implications of the double aspect theory under the Indian GST Model and how it should be averted in order to prevent double taxation by interpreting the Seventh Schedule in light of the doctrine of pith and substance instead