The fiscal policy of India took a key step on 1st July, 2017 as the government implemented Goods and Service Tax (GST). GST is destination-based tax structure which subsumes various indirect taxes at both Centre and State level into a single tax with five slabs with option of availing input tax credit at each state. The reform indicates distinction of tax structure among 160 developed and developing countries around the world. India adopted a dual GST structure based on a pragmatic federal relationship that requires both the Centre and States to play a crucial role in deciding GST structure and rates thereof.