When GST was implemented w.e.f 1st July 2017, main criticism was that it ignored federal structure of the nation. As mentioned in the Constitution Bharat shall be union of states and India is Federal in structure and Unitary in nature unlike UK and US which are Unitary and Federal respectively.
India is Unitary as there is single Constitution, integrated judiciary, .single citizenship, single election commission etc. India is federal as there is both central and state governments, three lists (Central, State and concurrent) etc. The problem is not with either GST or federal system but with double standards.
The real threat to federalism is with special status to certain state, at present demand by TDP is burning issue. Ok, it’s because of partition of Andhra and Telangana. But when Chattisgarh, Jharkhand and Uttarakhand were created, neither new states nor the state from which partition took palce, asked for special status! Moreover when one state demand for special status 10 more states stand in the queue which is cumbersome to handle.
Another issue is that harms federalism is inter-territorial divide. Recently new chief Minister of M.P urged neither people from Bihar nor from U.P. should be given employment and Madhya Pradesh is only for citizens of itself. It is disastrous for federal set up of the country.
The another problem creeps me during formation of financial commission. Larger states claim theirs is the more tax paying state and hence they need more sanctions! But when more food producing states put forth the above theory, what will be the consequence!? But in case of reservation the story of weak child is put forth and they proclaim in a house sick child is taken care of the most. But same people forget that in a nation BIMARU states are given priority. Double Standards is the sole problem.
GST is not injurious for federal system as it includes both CGST & SGST moreover petroleum products are excluded from GST which can fetch ample revenue for the states. The hitch is region centric attitude co existed by double standards. The remedy is that self proclaimed socialism and federalism should be mutually comprehensive and not contrary.