24 June, 2021

One Year Of GST: Empowering The Centre

GST has taken India further away from a sound federalism

One Year Of GST: Empowering The Centre
outlookindia.com
2018-06-23T12:46:45+05:30

The enactment of GST last year was initially touted as a success story for cooperative federalism, particularly because federalism and the rights of states were leitmotifs of PM Narendra Modi’s poll campaign. The mantle of carrying this idea forward fell on the Niti Aayog, which added competitive federalism to the matrix. It is becoming clear now that there are federal deficit in the way the GST has been conceptualised and operationalised, starting from how the GST Council has been constituted and decisions taken.

READ ALSO: One Year Of GST: GST Or GSTN’T?

While the protracted negotiations preceding GST’s birth brought even the hesitant states on board, there remained serious reservations on its long-term imp­act on the autonomy of states in charting their own course of development. Repeated tinkering with rates and their multiplicity compounded the problem, making...

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