Abstract
One of the key questions of research on federalism is to understand the conditions or causal mechanisms under which constitutional change—that reallocates powers between the centre and the states– becomes feasible in federal systems. However, the literature on federalism offers limited guidance on how to persuade subnational states to adopt amendments which seek to diminish their constitutionally assigned powers—especially their tax authority, which is a primordial feature of their institutional empowerment—without violating democratic decorum and federal principles. The case of indirect tax reforms in India assumes significance in this context. It adds important insights to the debate on how best to understand the circumstances under which the proposals to amend the constitutional division of powers enter the political agenda and the conditions under which they fail or are finally adopted.