Chief Justice of India DY Chandrachud lauds GST as a classic example of corporate governance

The introduction of the Goods and Services Tax (GST) in India is “a classic example of collective bargaining,” Chief Justice of India DY Chandrachud said on Saturday.

The courts, in the last few decades, have created a strong framework of federalism to ensure that the rights of states are protected, he said, speaking on “Understanding Federalism and Its Potential” in the first annual lecture series organized by Marathi daily `. Loksatta’.

Federalism, for Indians, is not a “monolithic concept” but has many aspects, the CJI said.

Cooperative federalism is a system of governance where the Center and states work together to “resolve differences to achieve the common goal of development,” he said.

The dialogue between the Union government and the states must be placed on “two ends of the spectrum,” said Chandrachud, adding that at the end there is a dialogue of cooperation encouraged by federalism, while “interstate competition” between the states and the Union. another conclusion.

“Both forms of dialogue are equally important for unity and for our country to prosper, and what better example (one can think of) than the introduction of GST,” the CJI said.

After 1990, when the Indian economy underwent market reforms, the economy has become the focus of political discourse, he said.

“The amendment to the Constitution to reflect and include the GST, in my mind is a classic example of cooperation, solidarity,” added Chandrachud.

Courts have played an important role in developing the principles of Indian federalism, said the chief justice.

“Courts have been at the forefront of this development, creating doctrines to protect the states’ interests in terms of ownership and efficiency,” he said.

In addition, in the last few decades, “courts established a strong legal framework on federalism to ensure that the rights of the state are protected, the identification of different communities is encouraged and the importance of representation is enhanced,” he noted.

The nature of our Constitution has changed with the actual functioning of democracy, said Chandrachud.

“The idea of ​​federalism that was thought of by our founding fathers and mothers did not stand still, an idea that has emerged by looking at the realities of change, the maturity and strength of our political system to include more independence in the government,” he added.

The Constitution of India should have been a “transformative document”, said the CJI, while also noting that issues such as climate change, AI, data privacy and cybercrime transcend the territorial boundaries that form the basis of unitary units.

“These new challenges are not compatible with the usual methods of union and state studies…..some states of India are more affected by the risks of climate change, while others may be prone to cyber attacks due to the high volume of virtual activities. ,” he said.

If Federalism in the past years adapted to the political conditions of the country in terms of the power of law, in the coming years it should also be evaluated based on its ability to promote democracy and the constitutional principles of equality, freedom, dignity and fraternity. , Chandrachud added.

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October 27, 2024


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