Jammu and Kashmir Finance Minister Haseeb Drabu today termed the GST Council, which held its 2- day meeting here, as the country's first federal institution saying the new tax regime will pave way for cooperative federalism.

The Goods and Services Tax (GST) regime will bring 'major changes in fiscal and political side of India's federal structure because of which coercive federalism will pave way for cooperative and competitive federalism', Drabu said here at a roundtable of the finance ministers of various states.

He said the new indirect tax regime has sown the seeds of lateral federalism by recognising the new political, economic and social realities in the country.

'The economic reforms ushered in 1991 did not seek to consult the states. Now in 2017, with the GST being rolled out on July 1, every single state has been taken on board..