The paper examines GST as a major indirect tax reform since 1947, aimed at streamlining taxation through a single tax on the supply of goods and services, replacing nearly 15 state and federal taxes in line with cooperative federalism. It discusses how manufacturing states like Maharashtra and Tamil Nadu raised concerns about revenue loss due to GST being a destination-based tax, and how the Constitution (101st Amendment) Act, 2016 provides compensation to states for revenue loss for the first five years. The paper analyzes the state compensation mechanism, the process of computing and paying compensation, and presents detailed data on GST compensation released to states for FY 2017-18 and 2018-19. It concludes with recommendations for better GST results over the next 3 to 5 years, including inclusion of petroleum products, electricity, real estate, and alcohol into the GST framework.