ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Goods and Services Tax (GST)Subscribe to Goods and Services Tax (GST)

Sharing of Goods and Services Tax Revenues

The operation of the Integrated Goods and Services Tax Act, 2017 and the Goods and Services Tax (Compensation to States) Act, 2017 is examined to identify the distortions that have crept into this devolution channel. These problems can be successfully addressed if the existing laws are implemented completely and consistently. This is not the case now.

The Indian Economy

Deadly and frightening as it appears, it is still too early to estimate the severity of India’s Covid-19 second wave. Unlike the transatlantic countries where it appears to have peaked, India’s second wave is still trending upwards. While the second wave is more devastating, India’s unpreparedness is evident. India needs to recognise that such pandemics will come again. It needs to diversify and secure its supply chains, vaccine output, and upgrade its poor healthcare infrastructure. The Indian economy has been badly hit by the pandemic, with one of the highest output losses amongst major economies. One of the possible reasons for this is the limited fiscal support despite a stringent lockdown, with most of the heavy lifting done through monetary measures. Going forward, its economy needs to overcome several challenges before it can return to its former high growth trajectory.

Rethinking India’s Federalism

Addressing the problems in local body governance requires a reimagining of federalism in India and moving away from the centre–state framework. Beholden to partisan politics and the state’s unwillingness to part with powers, local bodies have not been able to fulfil the potential envisaged for them in the 73rd and 74th amendments to the Constitution. The answer lies in locating their powers and functions in the Constitution itself.
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