Implementation of GST and NEET is a major challenge to Indian federalism. (UPSC CSE Mains 2018 - Political Science and International Relations, Paper 1)
GST
- The introduction of the GST Act in 2017 marked a significant tax reform. It replaced a complex web of indirect taxes with a unified tax structure, promoting ease of doing business and reducing tax cascading. The introduction of GST reduced the tax collection powers of the states.
- Some state finance ministers have alleged that the GST Council’s decisions are influenced by political considerations and not by economic rationality. They have also complained that their views are not given due weightage and that they are often outvoted by the majority.
- The GST has taken away much of the autonomy available to states and has made the country’s indirect tax regime unitary in nature.
- India’s GST is precariously held together by the loose thread of "compensation guarantee", under which states surrendered their fiscal powers in return for guaranteed revenues. However, during the Covid-19 pandemic, the Union government repeatedly violated the compensation guarantees to the States under the GST regime. Delay in paying the States their due worsened the impact of the economic slowdown.
NEET
- NEET has dismantled the state’s in-service quota for medical graduates in the government sector, which, according to critics, has undermined quality healthcare.
- The state has its own admission system based on the marks obtained in the Class 12 board exams, which is considered more inclusive and equitable than NEET.
- NEET, on the other hand, is imposed by the Centre without consulting the state governments and disregards the diversity and needs of different regions.
TN Plea to Supreme Court Related to NEET Exam
- The Tamil Nadu government in February 2023, moved the Supreme Courtchallenging the constitutional validity of NEET, alleging NEET violates the principle of federalism, which is part of the Basic Structure of Constitution.
- The Tamil Nadu government also claimed that NEET takes away the autonomy of states to make decisions regarding education.
- The petition is filed under Article 131 of the Constitution,which allows the Supreme Court to adjudicate disputes between the Centre and state/s.
- The plea alleged that NEET violatesright to equality under Article 14 of the Constitution as it “discriminates against students from rural areas and state boards”.
- The state said NEET is modelled on CBSE/NCERT syllabus, which puts rural students at a loss. The state alleged that students from rural parts lack economic resources to afford coaching classes which puts them at a greater disadvantage despite good scores in their state boards.
- The Tamil Nadu governmentsought a declaration from the Supreme Court to hold Section 14 of the National Medical Commission Act, 2019 prescribing NEET as “ultra vires” the Constitution on multiple grounds.
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