By Dr. Gyan Pathak
The manner in which GST Council has to decide the latest reform on goods and service taxes in India, has given an impression that it has become the latest victim to erosion of its constitutional autonomy. However, if this impression is true, it is a serious issue. Moreover, in which manner it adversely affects the financial future of the country? There has already allegation that ECI, CBI, ED, CIC, Parliament, and other Constitutional bodies have been undermined under PM Narendra Modi.
The suspicion of undermining the integrity of GST Council as constitutional body stemmed from the fact, and which is noted and pointed out by the opposition Congress, that the Union Finance Minister Nirmala Sitharaman made major announcements last evening (on September 3), after the meeting to the GST Council. The question is why Union Finance Minister should announce the decisions taken at the Constitutional Body even before the GST Council officially announces it.
Congress leader and Party’s general secretary of communication Jairam Ramesh has said, “However, even before the GST Council meeting, the Prime Minister had already proclaimed the substance of its decisions in his Independence Day speech of August 15, 2025. Is the GST Council to be reduced to a formality?”
We have enough evidence and reasons to believe that the Constitutional autonomy of the GST Council might have been undermined under PM Narendra Modi. Unilateral Decision-Making remains an issue and several states have raised their concerns and pointed out their revenue losses chiefly due to the decisions taken without consensus. Pre-announcement of Reforms and the political timing has disrupted the Council’s consultative role. There has been certain policy shift what impacts industry, but the decisions were taken without proper dialogue with stakeholders. That is why several formal sector bodies felt excluded from policy shifts.
Congress general secretary Ramesh has pointed out a key demand of the states made in the true spirit of cooperative federalism, namely the extension of compensation for another five years to fully protect their revenues, remains unaddressed. In fact, that demand assumes even greater importance now.
Only a few days back Telangana has sounded an alarm over the revenue loss of the state under the GST rationalisation plan. Telangana’s Finance Minister VikramarkaBhatti had warned that Centre’s tax rationalisation plan could cost the state nearly Rs7000 crore annually – about 15 per cent of its GST revenue. The concern was that such significant changes were being proposed without thorough consultation through the GST Council, compromising fiscal federalism.
Not only Telangana, but also several opposition-ruled states had echoed similar apprehensions, estimating overall revenue losses of Rs1.5-Rs2 lakh crore to the states. They had demanded a transparent compensation mechanism – suggesting that the decisions were being pushed rather than built via collaboration. These suggests that the GST Council may be functioning more as a rubber-stamp body rather than a robust, consensus-driven Constitutional body.
The next is political timing and fiscal pressure. There has been already adverse impact of the PM Modi’s announcement of major GST cuts, even before the Council’s formal approval. It led to consumers delaying purchases, resulting in a significant loss of revenue, potentially exceeding Rs2 lakh crore, as a former finance secretary SC Garg has highlighted. Such pre-announcements and rapid rollouts raise questions about whether the GST Council’s deliberative process is being bypassed or undermined for political expediency?
What then we have achieved by the rubber-stamped decision? Union Government has god a scapegoat in the form of GST Council to say that the decisions are no of their government’s but of GST Council’s. It is just like shifting the responsibility to the GST Council while the governments enforced their decision on the Council.
It is in this backdrop criticisms by the opposition and others of the decisions of GST Council should be understood. Congress president Mallikarjun Kharge has criticised the GST setup and said that in place of “One Nation, One Tax” the government have brought “One Nation, Nine Taxes” to highlight the ongoing complexity and divergence from the promise of a unified, simple GST framework. “The Modi government changed ‘One Nation, One Tax’ to ‘One Nation, 9 Taxes’. It included tax slabs of 0%, 5%, 12%, 18%, 28% and special rates of 0.25%, 1.5%, 3% and 6%,” Mr. Kharge said.
Similarly, the Clothing Manufacturer’s Association of India (CMAI) had decried the sudden GST increase from 12 per cent to 18 per cent on garment priced above Rs2,500, and warned that it would undermine the middle-class apparel sector, handicraft artisan, and MSME employment. This is only an example, and there are criticisms from other sectors too. These indicate that the decisions were made without consultations with stakeholders.
Undermining the Constitutional autonomy by the Modi government was most pronounced in the changes made in Election Commission of India (ECI). It went for an appointment process overhaul in 2023, replaced the Chief Justice of India with a Union Minister in the selection panel for CEC and other ECs. It tilted the balance in favour of the government, undermining the independence of the ECI. Rules were amended to reduce transparency in the election process – especially rule 93(2)a to restrict public inspection of electronic records such as CCTV footage and candidates’ videos. Opposition sees it as shielding electoral malpractice from scrutiny.
Then there are alleged election manipulations – such as allowing mass discrepancies in voter rolls as alleged by the Leader of Opposition Rahul Gandhi who has publicly given even proof. He has been alleging vote theft not only in Maharashtra election of 2024 but also during Lok Sabha Election 2024. Now, we have seen how through Special Intensive Revision (SIR) in Bihar, was sought to be conducted, and how Supreme Court of India intervened. ECI is hiding behind technicalities for keeping the errors in the Bihar Draft Electoral Roll 2025, and not accepting objections from the opposition political parties. ECI has been accused of sluggish oversight and selective actions, which goes in favour of the Modi government.
As for CBI and ED, even Supreme Court has cast aspersions and pointed out that the central agencies must not act as tools of the political establishment in power. Their performance has been very dismal, while they are registering cases and harassing leaders of the opposition political parties, arrest them and keep them in jail without trial. Supreme Court has objected to it in several cases, and even gave bails to the opposition leaders, since there were no charge sheets against them or no possibility of commencing of trial in near future.
Right to Information (RTI) has increasingly made ineffective by amending the act, which undermines the Central Information Commission (CIC). Whistleblower Protection act has been amended to weaken the protection, which is dilution of legal safeguards of promotion of transparency. Data suppression is another strategy of the government, and the opposition alleges that delay, withholding, or suppressing date undermine public accountability. Moreover, there are threat of sedition cases against those who criticise the government. Implicating in cases or even resorting to bulldozer justice has been continued, despite criticism by the Supreme Court of India.
What is then the autonomy of the Parliament of India – both the Rajya Sabah and Lok Sabha? We have recently seen how Chairman of the Rajya Sabha, that is Vice President of India had to resign. Presiding officers in the Rajya Sabha and in the Lok Sabha are seen routinely rejecting the motions of opposition on the insistence of the ruling political establishment. How much Constitutional autonomy and integrity of the Parliament is left by now? It is a matter of consideration. Phenomenal rise in the ordinances and rushed amendments to the laws without discussion, and without participation of the opposition, has done nothing, but undermined the integrity of the Parliament of India.
Then there has been continued efforts by the ruling establishment to control the fourth estate of India’s democracy, that is the Media. Independent media outlets had even faced raids and criminal cases, while supporting or godi media are flourishing. Independent media are being financially crippled. This should be a serious concern for the people.
All these have impacted the public trust on Constitutional Bodies. Their autonomy can be seen undermined, which on can see with naked eye. No wonder, several evaluating agencies like V-Dem has downgraded India’s classification from a “flawed democracy” to “electoral autocracy”. Opposition INDIA bloc led by Congress has been running a campaign to save Constitution, alleging that PM Narendra Modi has undermined every Constitutional Body of the country. (IPA Service)
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