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EXCLUSIVE: SC’s GST verdict not a blow to the idea of one nation one tax, says Rajasthan CM Ashok Gehlot

EXCLUSIVE: SC’s GST verdict not a blow to the idea of one nation one tax, says Rajasthan CM Ashok Gehlot

Ashok Gehlot, Chief Minister of Rajasthan, in an exclusive conversation with BT, today commented on the judgment, saying that the SC by passing this verdict has acted solely in the interests of co-operative federalism.

SC’s GST verdict not a blow to the idea of one nation one tax, says Rajasthan CM Ashok Gehlot SC’s GST verdict not a blow to the idea of one nation one tax, says Rajasthan CM Ashok Gehlot

The Supreme Court last week came up with the landmark judgment about the GST Council saying that recommendations passed by the council are not binding and that they are just recommendatory and hold persuasive value. Ashok Gehlot, Chief Minister of Rajasthan, in an exclusive conversation with Business Today, today commented on the judgment, saying that the SC by passing this verdict has acted solely in the interests of co-operative federalism. 

“The judgment rendered by the Hon’ Supreme Court on May 19, 2022, has upheld the spirit of co-operative federalism,” Gehlot said. 

Gehlot also pointed out that fears over the judgement affecting the idea of ‘one nation one tax’ are unfounded. 

“The core idea of ‘one nation one tax’ would hardly be affected as the nation as a whole has emerged as common and integrated market wherein any kind unilateral structural changes without consultation and consensus is a deterrent for the smooth functioning,” Gehlot told BT. 

Talking about the immediate changes required in the GST Council, Gehlot said that the council needs to deliberate more on state specific issues as well as regional disparities. 

“Further, greater flexibility should be given to the implementation processes,” he added. 

The Rajasthan CM, and also a veteran Congress leader, commenting on the GST compensation period of five years which is set to expire on June 30, said, “COVID-19 pandemic and its after-effects have disrupted the economy, limiting the revenue collections. Though the economy is on path of recovery, yet it will take time for effects to wither away. Also, during this period looking at the effect on people at large, spend on social security has increased. Thus, there is a dire need to extend the compensation period by five years from June 2022 to June 2027,” Gehlot added. 

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