GST Reforms in India: A Rights Perspective

The Goods and Services Tax (GST) Council’s recent announcements and reforms have reignited debates around economic justice and fairness in India. As India continues to refine its GST framework, there is a need to evaluate these reforms not only through the lens of economic efficiency but also with a focus on human rights, ethical principles, and the broader well-being of society. Drawing from traditional Hindu ethics, which emphasize fairness, social equity, and the collective good, we can gain fresh insights into how these reforms impact various segments of society, particularly the marginalized and vulnerable.

GST Relief for Health Insurance Premiums

One of the notable outcomes of the GST Council's recent deliberations is the expected relief for individuals and senior citizens on health insurance premiums. In a country where out-of-pocket healthcare expenses push millions into poverty each year, this relief is welcome. From a human rights perspective, access to affordable healthcare is a fundamental right. Hindu ethics, with its core tenet of “Dana” (giving), underscores the responsibility of the state to ensure the well-being of its citizens. By alleviating the financial burden on health insurance, the government is taking a step toward upholding the deeply rooted principle of “Sarvodaya” – the welfare of all .

Long but substantiative discussion

However, while this GST relief is a positive move, it remains insufficient in addressing the broader systemic issues of healthcare access. The current relief measures must be accompanied by a more comprehensive policy framework that extends beyond merely reducing tax burdens. We must advocate for an inclusive healthcare system that does not discriminate based on economic status and ensures that all citizens, particularly the marginalized, have access to necessary medical services. This would align more closely with the ethical imperatives of inclusivity and equity in Hindu teachings.

Taxation on Online Gaming and Digital Transactions

The GST Council's decision to impose or recalibrate taxes on online gaming and digital transactions is another critical area that calls for scrutiny. Online gaming, especially in formats that resemble gambling, poses ethical and social concerns. The imposition of taxes on online gaming could be seen as an effort to discourage addictive behavior that can have detrimental social effects. However, this decision also opens a dialogue about the balance between regulating potentially harmful activities and respecting individual freedoms.

Hindu ethics place great emphasis on “Dharma” (duty and righteousness), suggesting that any form of state intervention should serve the higher purpose of societal well-being. Taxing online gaming activities could align with the principle of maintaining social order and preventing harm. Nevertheless, the approach should be nuanced; while regulating such activities is important, the state must also ensure that regulations do not disproportionately impact those who use digital platforms for legitimate and creative purposes, like e-sports or educational gaming.

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Similarly, the GST Council’s plans around digital transactions—such as incentivizing online payments—can be seen as steps toward modernization and transparency. Yet, there must be caution against deepening the digital divide. Policies should be crafted to ensure equitable access to digital infrastructure, so rural and economically disadvantaged communities are not excluded from the benefits of a cashless economy. Here, the principle of “Nyaya” (justice) from Hindu ethics should guide policy-makers to foster an environment where progress does not come at the cost of social exclusion.

The GST Amnesty Scheme: A New Opportunity?

The announcement of a GST Amnesty Scheme under Section 164 is another focal point. This scheme, aimed at providing relief to small businesses by waiving late fees and penalties, can be interpreted through the lens of “Karuna” (compassion). Small and medium-sized enterprises (SMEs) are often the backbone of local economies and crucial for employment generation. Many SMEs struggle with compliance due to lack of resources or knowledge, not intent. Offering them a second chance is a move that resonates with the principle of compassion and understanding, acknowledging that errors or defaults are often born from circumstances rather than malice.

However, such a scheme should be designed to truly empower small businesses rather than merely serve as a temporary relief measure. The amnesty must be followed by robust capacity-building efforts to help these businesses better understand and navigate the GST framework. This would align with the Hindu ethical commitment to “Svadharma” (self-responsibility) and mutual upliftment, where every actor in society is given the tools to perform their duties effectively

While the recent GST reforms represent steps in the right direction, a broader human rights perspective calls for deeper introspection. Tax policies should not only aim for revenue maximization but also strive to create a fair and just economic order. They should serve as tools for social equity, ensuring that the poor are not disproportionately burdened, and the wealthy contribute their fair share.