Significance of the 101st Constitutional Amendment Act
The 101st Constitutional Amendment Act, enacted in August 2021, primarily addresses the Goods and Services Tax (GST) regime in India. It holds immense significance in the context of federalism and cooperative governance.

Key Features
- Enabling GST Compensation: The amendment provides a legal framework for the compensation to states for revenue losses incurred due to the implementation of GST. This ensures states are safeguarded financially.
- Strengthening Cooperative Federalism: By mandating the establishment of a GST Compensation Fund, it fosters a spirit of cooperation between the Centre and states, promoting unity for economic stability.
- Taxation Powers: The amendment clarifies the states' powers regarding the taxation of goods and services, ensuring a balanced approach in the federal structure.

Reflecting the Accommodative Spirit of Federalism
The 101st Amendment exemplifies the accommodating spirit of Indian federalism in the following ways:
- Collaboration between Centre and States: It encourages collaboration, essential for effective governance, by recognizing the financial needs of states.
- Equitable Distribution of Resources: The compensation mechanism promotes equity by ensuring that states with lesser economic capacity are not adversely affected by GST.
- Flexibility in Governance: The amendment adapts to changing economic scenarios, showcasing the dynamic nature of federalism in India.
In conclusion, the 101st Constitutional Amendment Act not only enhances the GST framework but also reinforces the essence of cooperative federalism, ensuring that both the Centre and states work together for economic resilience and equitable growth.