Now that GST has come into effect, the debate is on if this new tax is targeted to kill the Federal System and make the State Governments week. There are inhibitions that GST will lead to States lining up to the Center with begging bowl.
But then, all these seem to be baseless. There is a GST Council which takes every decision regarding the Tax Rates and the implementation. The council will have Two Ministers of the state and one each minister of the states. The each vote of the Central Ministers will have 16.5% weightage taking the total to 33%.
31 Ministers from the States will have 2.12% Votes Weightage taking the total to 67%. For the council to pass any decision, 75% acceptance is needed. That implies a decision can be implemented only when the center and the states are on the same page.
