Deep Dive with AKB: GST row and the question of cooperative federalism

When the Narendra Modi-led central government rolled out the goods and services tax, or GST, in July of 2017, it was pitched as the greatest indirect tax reform in India. It was meant to streamline processes between the Centre and states and further the cause of what is touted as ‘one nation, one tax’.

But the sailing since then has not been as smooth as one would have liked it to be. Even if its intent has been backed by most, the Centre has often been criticised for the messy rollout of GST.

And now, when the coronavirus pandemic has hit the Indian economy hard and squeezed government revenues, we are seeing quite a row between the Centre and states over GST compensation. We are also hearing the questions of cooperative federalism being raised.

So what is the whole controversy about? Why are some states miffed? What is the government’s solution to the problem? And what could lie ahead?

Let’s take a Deep Dive with AKB to understand.