Chief Justice of India D Y Chandrachud hailed the Goods and Services Tax (GST) as a “classical example of cooperative federalism,” emphasizing its role in promoting collaboration between the Centre and states. He noted that Indian federalism is dynamic, evolving to address contemporary challenges like climate change and cybercrime, while ensuring the protection of state rights and constitutional ideals.
Mumbai: Chief Justice of India (CJI) D Y Chandrachud described the Goods and Services Tax (GST) as a “classical example of cooperative federalism” at the inaugural annual lecture series hosted by Loksatta in a speech titled “Understanding Federalism and Its Potential.” Highlighting how federalism operates in India, CJI Chandrachud pointed to GST’s collaborative framework as a model of cooperation between the states and the Union government.
According to CJI Chandrachud, federalism in India is not a “monolithic concept” but comprises multiple facets that accommodate the unique identities and demands of states.
“Cooperative federalism,” he explained, “is a system of governance where the Centre and the states work together to iron out differences to achieve the common goal of development.”
This system, he said, is essential in supporting both collaborative discussions and constructive contestation between the states and the Union.
“Both forms of dialogue are equally important for federalism and for our nation to flourish, and what better example than the introduction of the GST,”
he remarked, noting how this collaborative spirit aligns with India’s long-standing federal traditions.
The Chief Justice emphasized that post-1990 economic reforms have moved economic policy to the forefront of political discourse in India. GST, he added, was made possible by constitutional amendments that stand as a
“classical example of collaborative, cooperative federalism.”
CJI Chandrachud also acknowledged the role of the judiciary in developing a “robust jurisprudential framework on federalism” to ensure the protection of state rights, community identities, and representation. “The courts have been at the forefront of this development,” he said, ensuring that Indian federalism adapts to changes in political and economic landscapes.
Federalism, the Chief Justice noted, has evolved in response to “the maturity and strength of our political system” and now grants states more autonomy in governance. However, new challenges like climate change, artificial intelligence, data privacy, and cybercrime transcend traditional federal structures, impacting states differently based on their exposure to virtual transactions and environmental conditions.
“These new challenges ill-fit the conventional modes of union and state subjects,”
he observed, as issues like cyber threats and climate change affect states unequally across India.
In conclusion, CJI Chandrachud suggested that the value of federalism should be assessed not only by legislative powers but also by its effectiveness in fostering democracy and advancing constitutional ideals of “equality, liberty, dignity, and fraternity.”
By drawing attention to the evolving nature of Indian federalism, the Chief Justice reinforced the significance of cooperative governance models, like GST, which serve as prime examples of India’s capacity to adapt its federal structure for contemporary challenges while promoting a unified vision of development.
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