Tranformational tax reform

The many criticisms about the implementation of the goods and services tax (GST) must not be allowed to obscure the fact that what was implemented was a truly transformational tax reform. First, let us look at the politico-economic dimension. While the world over, there has been demand for devolution of fiscal responsibility and even political separation — Scotland from the UK, Catalonia from Spain and Quebec from Canada, the GST reforms in India represents a reverse phenomenon where the Centre and the states have voluntarily abjured their “Right to fiscal sovereignty” and opted for pooled sovereignty and joint policymaking through