Taxation And Co-Operative Federalism, A Comparative Case Study On The Tax Regimes Of India And Other

Taxation And Co-Operative Federalism, A Comparative Case Study On The Tax Regimes Of India And Other Countries

Harish B, Tamil Nadu National Law University

ABSTRACT

Co-operative federalism is the type of governance that every democratic country strives to achieve, it is a flexible method of governance that allows for efficient allocation of power and resources that are necessary for the functioning of a state, it also allows for proper settlement of inter-state disputes.

Many states over the years have tried to inculcate co-operative federalism through their taxation legislations, a more precise term would be ‘fiscal federalism’, more particularly taxation regimes have been employed in countries such as America and Australia. Decisions related to taxation matters is the marriage of interests of both state and centre, it allows for the both the state and central government to reach a consensus before establishing a taxation regime.

The purpose of this study is to understand how a tax regime, particularly the GST has helped India in its journey to achieve total cooperative federalism and how efficient the regime has been in doing the same until now. Another objective of this study is to compare India’s GST regime with that of other countries that have employed similar taxation systems to achieve fiscal-federalism.