The goods and services tax (GST) council that has been notified this week will be another important step towards cooperative federalism. Earlier, states had no role in deciding central taxes, but now, under GST, the council will decide on the central GST rate and the state GST rate. Technically speaking, the decisions of the GST council is not binding on any state and every state remains autonomous. Sorting out all the issues will be important to finalize the legislation—the central GST law, the state GST law and the integrated GST law. The GST council is fighting against time.

Source: Mint September 15, 2016 18:11 UTC