One of the numerous changes that Goods and services tax(GST) implementation was anticipated to bring about was to give Indian federalism a more "Cooperative" feel. The states were wary of the GST infringing on their financial independence, much like they were when Value Added Tax(VAT) was introduced in 2005. GST finally went into effect on July 1st, 2017, after 11 years of preparation. This essay seeks to assess how Goods and Services Tax (GST) has affected fiscal relationships between Indian Union Territory (UT) and States. This essay aims to provide an evaluation of the GST Council's structure, the various GST rate slabs, and a comparison of the devolution of taxes under pre- and post-GST regimes. The report also discusses the different vertical and horizontal fiscal imbalances that predated GST and their effects after GST. Along with additional government statistics in the form of the Economic Survey 2017–18 and other Government Committee reports, a thorough analysis of the budget documents from the previous three years has been conducted. The financial independence of the states is infringed upon by the GST, it has been discovered. Additionally, it has been demonstrated that several decisions appear to have been made haphazardly and are not compatible with the VAT or GST regimes in other regions of the world.