DOI: 10.36347/sjahss.2018.v06i01.032

Pages: 208-210

Prime Minister Narender Modi’s statement after his victory in May 2104 elections that his government is serious about restructuring centre-state relations and strengthening the principles of cooperative federalism. The strongest decision in this regard was made when the new government announced the dissolution of the Planning Commission and second is India’s biggest tax reform-Goods and Services Tax (GST) Bill that has been recently passed by government. The GST is expected to usher in a uniform tax regime across India through an expansion of the base of each into the other’s territory. The road to the GST is still strenuous. Some made objections on that it will usurps over the tax-levying powers of the states and thus making a serious threat to federalism which is the basic structure of the constitution. Other argues that it must be hailed instead of opposing for it opens the path of development for the country. This paper is an effort to evaluate the effects of GST on Indian economy and on the center-state relations. An attempt also has been made in this work to find out the obstacles in the implementation of GST on Indian economy with some possible solutions.