Explain the significance of the 101st Constitutional Amendment Act. To what extent does it reflect the accommodative spirit of federalism? (Answer in 250 words)

The 101st Amendment created the constitutional architecture for the Goods and Services Tax, replacing multiple indirect taxes with a shared national framework.

Significance

• It inserted Articles 246A, 269A and 279A, enabling concurrent GST powers, inter-state levy and the GST Council.
• Subsuming several central and state taxes reduces cascading, creates a common market and improves compliance through invoice trails.
• Compensation and destination-based taxation address transition and inter-state consumption concerns.

Federal accommodation

• The Council institutionalises negotiation: Union and states participate in rate, exemption and procedure decisions.
• States surrendered significant tax autonomy in exchange for harmonisation, revenue assurance and shared decision-making.
• Weighted voting and consensus practice reflect cooperative rather than unilateral federalism.

Concerns over delayed compensation, central influence, revenue dependence and limited state flexibility show that accommodation is incomplete. Regular consultation, predictable transfers and fiscal trust are vital to cooperative GST federalism.

polity, federalism, GST, Constitutional Amendment