GST classical example of co-operative federalism: CJI Chandrachud

Mumbai: Introduction of the Goods and Services Tax (GST) in India was a "classical example of co-operative federalism," Chief Justice of India D Y Chandrachud said here on Saturday.

The courts have, over the last few decades, evolved a robust framework on federalism to ensure that the states' rights are protected, he said, speaking on 'Understanding Federalism and Its Potential' at the inaugural annual lecture series organized by the Marathi daily 'Loksatta'.

Federalism, for Indians, is not a "monolithic concept" but has multiple facets, the CJI said.

Cooperative federalism is a system of governance where the Centre and the states work together to "iron out 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," Chandrachud said, adding that at one end are collaborative discussions that cooperative federalism fosters, while "interstitial contestation" between the states and the Union are at the other end.

"Both forms of dialogue are equally important for federalism and for our nation to flourish, and what better example (one can think of) than the introduction of the GST," the CJI added.

Post 1990, when the Indian economy underwent market reforms, the economy has come to occupy the centrestage of the political discourse, he said.

"The amendment in the Constitution to reflect and embody the GST, is to my mind a classical example of collaborative, cooperative federalism," Chandrachud added.

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

"The courts have been at the forefront of this development, bringing out the nuances of the doctrine to protect the interests of the states in terms of identity and efficiency," he said.

Further, in the last few decades, "the courts evolved a robust jurisprudential framework on federalism to ensure that the state's rights are protected, identity of various communities is fostered and the value of representation is promoted," he noted.

The federal nature of our Constitution has undergone a change by the actual operation of the democracy, Chandrachud said.

"The concept of federalism that was envisaged by our founding fathers and mothers has not remained static, it's a concept which has evolved keeping in view the realities of the evolution, the maturity and strength of our political system to incorporate more autonomy for the state," he added.

The Indian Constitution was meant to be a "transformative document", the CJI said, while also noting that issues like climate change, AI, data privacy and cyber crime transcend the territorial boundaries which form the basis of federal units.

"These new challenges ill-fit the conventional modes of union and state subjects.....some Indian states are severely impacted by the perils of climate change, while some may be more prone to cyber attacks due to the greater volume of virtual transactions," he said.

If federalism in the years gone by was adjusting to the political realities of the country in terms of legislative powers, in the years to come it should also be evaluated based on its ability to foster democracy and constitutional ideals of equality, liberty, dignity and fraternity, Chandrachud added.