GST Federalism Crisis 2026: How States Lost Fiscal Power - Frontline Magazine

When the GST was launched on July 1, 2017, it was hailed as the most far-reaching reform of India’s fiscal system since the Constitution came into force in 1950. For decades, India’s indirect tax regime had been fragmented and inefficient. The Constitution had maintained a rigid division: the Union controlled taxes on manufacture (Central Excise), imports and exports (Customs Duty), and, subsequen…