Storm in a GST cup

The notion that the recent Supreme Court ruling alters the nature of fiscal federalism is misplaced, but the Council would do well to set up dispute resolution tribunals

Supreme Court Judge Justice D Y Chandrachud is justifiably “intrigued” at how his ruling on a commercial dispute, Union of India versus Mohit Minerals, over the levy of the integrated goods and services tax (GST) on ocean freight charges paid by importers has triggered a nationwide debate. Drawing inferences from, and debating the implications of his judgement, economists, political scientists and policy makers are discussing how it can potentially alter the nature of fiscal federalism in India. This is rather far-fetched, if not completely misplaced.

Contrary to being a “controversial Supreme Court ruling”, as Josh Felman and Arvind Subramanian described it