Keywords
Fiscal Federalism
Article 246A
Constitution
Centre State Relation
Categories
How to Cite
Abstract
This study explores the impact of Goods and Services Tax (GST) on fiscal federalism in Kerala, focusing on its implications for revenue generation, tax collection, and inter-state trade dynamics. It analyzes the dual GST model, which enables both the Union and States to impose taxes concurrently, but highlights the challenges posed by inconsistencies in tax rates across states. By examining the cost disparity between intra-state and inter-state transactions, the study identifies potential barriers to inter-state trade, as businesses may favor intra-state transactions to avoid higher integrated GST (IGST) rates. The research also delves into the legal framework of GST, questioning the sufficiency of Article 246A in addressing issues of repugnancy between central and state laws. The study calls for a more harmonized GST system to foster economic integration, reduce tax arbitrage, and clarify legislative authority in resolving conflicts between central and state GST laws. These findings provide valuable insights for policymakers, suggesting the need for further reforms to enhance the efficiency and equity of the GST system. Future research can expand these analyses to other states, contributing to the broader discourse on fiscal federalism in India.Top of FormBottom of Form
References
1. Chanchal Kumar Sharma (2021), “The Political Economy of India’s Transition to Goods and Services Tax”, German Institute of Global and Area Studies (GIGA), pp.01-26, Available at: https://www.jstor.org/stable/pdf/resrep28523.pdf?refreqid=excelsior%3A6b2bfb5123a1c42efefbd2d845f503c4&ab_segments=0%2Fbasic_search_gsv2%2Fcontrol&origin=&initiator=&acceptTC=1.
2. Jyoti Chaudhary (2021), “Indian Tax Structure”, pp.01-06, Available at: https://www.academia.edu /50142350/Indian_Tax_Structure.
3. Jitendra Yadav et.al (2020), “A Constitutional Study on GST and its Impact on Fiscal Federalism in India”, Journal of Critical Reviews, Vol.No.07(03), pp.2289-2296.
4. Verma & Saurabh (2019), “Goods and Services Tax: Is it in Accordance with the Federal Structure or Unitary Feature of the Constitution”, Leibniz Information Centre for Economics, available at: https://www.zbw.eu/econis-archiv/bitstream/11159/410733/1/EBP076219259_0.pdf.
5. Puneet Pathak and Rambha Kumari (2019), “GST Impact on Centre – State Fiscal Relation In India”, Asia-Pacific Finance and Accounting Review, Vol.No.07(03), pp.34-42.
6. Dipankar Debnath (2019), “History of Goods and Services Tax in India in the Light of Constitutional and Legal Framework with Special Reference to Constitution (101stamendment) Act, 2016: An Analysis”, Indian Journal Of Law And Justice, Vol.No.10(01), pp.118-127.
7. Rounak Kumar Pathak & Anant Prakash (2017), “Ongoing Tax Reforms Initiatives: A Step Towards Harmonization or Constitutional Conundrum”? Jyotirmay Research Journal of Education, Vol.No.04(01), pp.116-121.
8. Binh Tran-Nam (2019), “The Goods and Services Tax (GST): The public value of a contested reform”, Australian National University Press, pp. 235-256, Available at: https://www.jstor.org/stable/j.ctvh4zj6k.17.
9. Alok Prasanna Kumar (2016), “For A Mess of Potage: The GST’s Promise of Increased Revenue To States Comes At The Cost Of The Federal Structure Of The Constitution”, National Law School of India Review, Vol.No.28(02), pp.97-113.
10. Alok Kumar Prasanna (2016), “Goods and Services Tax: An Exercise in 'Controlled Federalism’? Economic and Political Weekly, Vol.No.51(34), pp.10-11.
11. Naseema (2016), “History, Constitutional Framework, And Evolution of Indian Tax System and Goods and Service Tax – A Study”, Bharati Law Review, pp.157-165. Available at: http://docs.manupatra.in/newsline/articles/Upload/197FAA37-956C-4573-8F58-20464016819D.pdf.
12. Student advocate committee (2016), “Transcript of the IX NLSIR Symposium On “Goods and Services Tax: The Changing Face of Fiscal Federalism in India”, National Law School of India Review, Vol.No.28(02), pp.143-192.
13. Upender Gupta (2016), “Integrated Goods and Services Tax (IGST)”, National Law School of India Review, Vol.No.28(02), pp.134-142.
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Copyright (c) 2025 South India Journal of Social Sciences