The Supreme Court’s ruling on Goods and Services Tax (GST) has brought limelight on States’ financial rights, said KN Balagopal, Kerala’s Finance Minister. Speaking to BusinessLine here on Thursday, Balagopal said, “Through this judgment, States can implement something positively. I feel that this is a landmark judgment making entire country free of the “one nation one tax regime”.
The judgment will also help protect the cooperative federalism and economic rights of States, the minister said adding that the Centre and States should look into it in a positive manner and make some amendments in the law with practical requirements.
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Opening closed chapters
He added that the judgment would open up the closed chapter of the compensation issue and recommencement of dialogue on the genuine demands of States which are facing financial problems due to GST and have been ignored.
Recalling the contents of the dissent note submitted by the select committee in which he was a member, Balagopal said GST was not benefitting States and also causing loss. On the future course of action likely to be taken up by States, including Kerala, the minister said: “We need to study the full judgment. But surely, it is changing the whole taxation perspective and scenario.”
Balagopal was in Hyderabad to deliver a lecture on ‘Federalism, Principles of Constitution and Impending Peril’ organised by Sundarayya Vignana Kendram.