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Do you think that the Goods and Services Tax (GST) regime has adversely impacted the centre-state relationship, undermining the principles of cooperative federalism? Critically examine.

Topic: Functions and responsibilities of the Union and the States, issues and challenges pertaining to the federal structure,

3. Do you think that the Goods and Services Tax (GST) regime has adversely impacted the centre-state relationship, undermining the principles of cooperative federalism? Critically examine. (250 words)

Difficulty level: Tough

Reference: Live Mint ,  The Print

Why the question:

Today, 1 July 2022, marks five years since India’s introduction of the goods and services tax (GST).

Key Demand of the question:

To write about the impact of GST on center-state relations and cooperative federalism.

Directive word:

Critically examine – When asked to ‘Examine’, we have to look into the topic (content words) in detail, inspect it, investigate it and establish the key facts and issues related to the topic in question. While doing so we should explain why these facts and issues are important and their implications. When ‘critically’ is suffixed or prefixed to a directive, one needs to look at the good and bad of the topic and give a fair judgment.

Structure of the answer:

Introduction: 

Start by giving as to how GST was aimed at promoting harmonious fiscal relationship between centre and sate.

Body:

First, write about the various issues that have caused disagreements between centre-states regarding GST and thereby negatively impacting cooperative federalism.

Next, write about despite its initial hiccups, how GST has contributed to growth of cooperative federalism. Substantiate with statistics.

Conclusion:

Conclude by writing a balanced opinion.