{"id":31489,"date":"2024-10-28T20:39:49","date_gmt":"2024-10-28T15:09:49","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=31489"},"modified":"2024-10-28T20:39:52","modified_gmt":"2024-10-28T15:09:52","slug":"gst-classical-example-of-cooperative-federalism-cji","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/28-10-2024\/gst-classical-example-of-cooperative-federalism-cji","title":{"rendered":"GST Classical Example of Cooperative Federalism: CJI"},"content":{"rendered":"\n<p><strong>Syllabus :GS 2\/Governance\/GS3\/Economy&nbsp;<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>In News<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Chief Justice of India D Y Chandrachud emphasized the introduction of the <a href=\"https:\/\/www.nextias.com\/blog\/goods-and-services-tax-gst\/\">Goods and Services Tax (GST) <\/a>as a &#8220;classical example of cooperative <a href=\"https:\/\/www.nextias.com\/ca\/editorial-analysis\/18-09-2024\/federalism-in-india\">federalism<\/a>.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><a href=\"https:\/\/www.nextias.com\/ca\/editorial-analysis\/18-09-2024\/federalism-in-india\"><strong><u>Federalism <\/u><\/strong><\/a><strong>In India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Founding Fathers of India established a &#8220;Union Constitution&#8221; that reflects a federal structure with a strong central government.\u00a0<\/li>\n\n\n\n<li>Federalism in India involves a <strong>sharing of power between the central and state governments, <\/strong>where both levels are empowered and co-equal.\u00a0<\/li>\n\n\n\n<li><strong>Dr. Ambedkar<\/strong> emphasized that India&#8217;s Constitution defines it as a<strong> Union of States,<\/strong> not a loose collection of independent entities.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Co-operative Federalism and <\/strong><a href=\"https:\/\/www.nextias.com\/blog\/goods-and-services-tax-gst\/\"><strong><u>GST<\/u>&nbsp;<\/strong><\/a><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Cooperative federalism involves the Centre and states working together towards development while acknowledging the importance of both collaborative discussions and &#8220;interstitial contestation&#8221; between the two levels of government.<\/li>\n\n\n\n<li>Key institutions like the NITI Aayog, Finance Commission, and GST-Council play crucial roles in policy making and modern federalism in India, underpinned by principles of equity, capacity, stability, and growth.\u00a0<\/li>\n\n\n\n<li>The <strong>101st Amendment, <\/strong>introducing the<strong> <\/strong><a href=\"https:\/\/www.nextias.com\/blog\/goods-and-services-tax-gst\/\"><strong>Goods and Services Tax (GST)<\/strong>,<\/a> marked a significant advancement in cooperative federalism by enabling both the Centre and States to levy taxes on goods and services concurrently, thus maintaining the federal structure.\n<ul class=\"wp-block-list\">\n<li>This cooperative approach involved the Centre relinquishing exclusive tax powers on manufacturing, while States gave up exclusive sales tax powers, facilitating uniformity in indirect taxation.\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Importance\u00a0<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The collaborative effort led to harmonized GST laws, common definitions, procedures, and compliance mechanisms across the country, effectively reducing compartmentalization in taxation.<\/li>\n\n\n\n<li>Cooperative federalism aspect of GST ensures equal representation of states in decision-making processes, with most GST Council decisions reached by consensus.<\/li>\n\n\n\n<li>\u00a0GST significantly contributes to state revenues, with states receiving 100% of the State GST (SGST) collected and approximately 50% of the Integrated GST (IGST).<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Issues and Challenges\u00a0<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Over time, tensions have emerged, particularly regarding GST compensation and the Council&#8217;s decision-making process.\u00a0<\/li>\n\n\n\n<li>States began to express concerns about delayed compensation, especially during the economic downturn caused by the COVID-19 pandemic, leading to accusations against the Centre for insufficient support.<\/li>\n\n\n\n<li>Opposition-ruled states perceive the GST Council as dominated by the Centre, which holds one-third of the voting power.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Conclusion and Way Forward\u00a0<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Healthy federalism requires negotiation and consensus, especially in a diverse country like India.<\/li>\n\n\n\n<li>GST intends to transform India into a true economic union, with the aim of \u2018One Nation, One Tax, One Market\u2019.\u00a0\u00a0<\/li>\n\n\n\n<li>The GST reform&#8217;s success depends on open dialogue and collaborative decision-making.<\/li>\n\n\n\n<li>The Centre must foster a consultative approach to strengthen fiscal federalism and address emerging conflicts.<\/li>\n\n\n\n<li>\u00a0Federalism should be assessed not only on legislative powers but also on its ability to uphold democratic ideals of equality, liberty, dignity, and fraternity.<\/li>\n<\/ul>\n\n\n\n<p>Source :ET<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Chief Justice of India D Y Chandrachud emphasized the introduction of the Goods and Services Tax (GST) as a &#8220;classical example of cooperative federalism.<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-31489","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/31489","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=31489"}],"version-history":[{"count":1,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/31489\/revisions"}],"predecessor-version":[{"id":31490,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/31489\/revisions\/31490"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=31489"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=31489"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=31489"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}