The GST Council is meeting in Chandigarh on Tuesday and Wednesday even as the tax regime completes five years in operation on June 30. Opposition parties and States ruled by them have serious concerns regarding the continuation of the indirect tax regime premised on ‘one nation, one market’ principle. Praveen Chakravarty, Chairman of the Congress Data Analytics Department, was an early critic of the GST (Goods and Services Tax) regime. He thinks restoration of trust between the States and the Centre is essential for the smooth continuation of the GST system. Edited excerpts of an interview.
You were sceptical when GST regime was rolled out. You feel vindicated?
I wish I was proven wrong. My view on GST was shaped by my understanding of federalism, and by using an economic lense. Indian States are extremely diverse economically, apart from being politically diverse. GST was a misfit in India. India has political parties that are confined to the boundaries of particular States. I understated the ill-effects of GST in my original critique. They have only exacerbated in the last five years, partly due to the Centre’s other centralising measures that accompanied the implementation of GST. The trust deficit between the Centre and the States has grown. I would not deny the fact that it is efficient. Efficiency comes at a certain cost though — political, social, and constitutional. I was arguing that it was not worth that cost.
