GST Council shifts to trust-based governance with decriminalisation move

The Confederation of Indian Industry (CII) on Sunday lauded the GST Council's recent decisions to decriminalise select infractions and rationalise enforcement mechanisms, characterising the moves as a significant shift towards trust-based economic governance.

The decisions, taken at the GST Council's October 8 meeting, reflect a consensus-driven approach that demonstrates how the central government and state administrations can collaborate on complex reforms affecting the business-government relationship, CII said. The industry body noted that the exercise required navigation of sensitive questions surrounding enforcement protocols, revenue protection and taxpayer concerns.

CII Director General Chandrajit Banerjee said the decisions represented a landmark institutional reform worthy of special recognition. "We deeply appreciate the leadership of Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman in advancing this transformation, and the constructive role of state governments in achieving consensus," Banerjee said.

CII has positioned the GST Council's approach as a potential blueprint for India's next generation of economic reforms, suggesting that collaborative governance models could unlock broader policy improvements across sectors. The industry body contended that the measures would enhance the relationship between government agencies and businesses while maintaining essential safeguards.