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A. International webinar
1 International seminar on India's experience with goods and services tax (GST) on 12 and 13 November 2021.
About the seminar
The two-day International Seminar on 'India's experience with Goods and Services Tax' organized by Gulati Institute of Finance and Taxation commenced on 12th November 2021. Dr. K.J Joseph, Director, GIFT welcomed the guests, speakers, and the participants. The seminar was inaugurated by Shri K.N. Balagopal, Hon'ble Finance minister of Kerala. Prof. M. Govinda Rao, former director of the National Institute of Public Finance and Policy delivered the keynote address. Smt Anitha Kumary L, Associate professor, GIFT proposed the vote of thanks.
It was after more than decade-long deliberations that India transitioned to the Goods and Services Tax (GST) regime in July 2017.It was often termed as a landmark reform and a great success of India's fiscal federalism. While the states have compromised on their autonomy and forgone a substantial part of their own tax revenue, they were in guaranteed the GST compensation that assured 14 per cent growth in their GST revenue for the initial five years. The one-nation-one-tax regime was expected to raise growth, the tax- GDP ratio, enhance, efficiency and competitiveness and bring down prices.
The COVID-19 pandemic has indeed been the unanticipated dampener. Nonetheless, it is pertinent to explore how GST has impacted the key stakeholders-the states concerned, the business community, especially the unorganized enterprises, the consumers, and the economy at large. More specifically, it is the time to seek answers to a number of issues of much relevance for policy and practice. These include, but not limited to, how has the business responded to GST? How effective has been the GST governance? Has the economy become more competitive globally? It is also pertinent to examine how has GST impacted the state' tax revenue and the fiscal federal relations? What has been its macroeconomic impact including on prices? Other issues relating to tax administration, GST and e-commerce sector, revenue productivity, also assume importance. It is also perceived that much more could be learned from countries with longer experience in dealing with GST.
The purpose of the international seminar was to bring together different stakeholders-academia, government and business-to facilitate an informed discourse on various issues related to GST. The seminar had special panels of senior administrators, experts from other countries that implemented GST, and experts from India apart from the presentation of research papers by scholars. The details of the scholars and topics discussed are as follows.
Day One
Panel Discussion -I: India's Experience with GST: Administrators' Perspective
Chair: R.K. Singh IAS (Additional Chief Secretary, Finance, Govt. of Kerala)
Panel Discussion-II: GST in India: The way forward
Chair: Prof D.K. Srivastava, (honorary professor, Madras School of Economics)
Technical Session-I: GST and State Finance
Chair: Prof. R, Kavitha Rao (Professor, NIPFP)
1. Impact of GST on the States' Tax Revenue with Special reference to West Bengal,
Dr. Sudip Kumar Sinha (Secretary, Finance Dept. West Bengal) Co-authored by
Dr Harikrishna Dwivedi (Chief Secretary, Government of West Bengal)
Prof. Achin Chakraborty. (Director, Finance Department, Government of West Bengal)
2. India's GST paradigm and the trajectory of fiscal federalism: An analysis with special reference to Kerala
Prof. K.J. Joseph (Director, Gulati Institute of Finance and Taxation)
Smt. Anitha Kumary (Associate Professor, Gulati Institute of Finance and Taxation)
3. What Explains Inter-state variations in GST Collection
Dr Kiran Kumar Kakarlapudi (Assistant Professor, Gulati Institute of Finance and Taxation)
Dr Santhosh Kumar Dash (Assistant Professor, Gulati Institute of Finance and Taxation)
Discussant: Dr. Ramalingam, Associate Professor, GIFT
Panel Discussion-III : GST: lessons from International Experience-I
Chair :Prof T M Thomas Isaac (Former Finance Minister,Government of Kerala)
Special Lecture: The Canadian GST experience in a global context
Prof pierre Pascal Gendron(Faculty of Business,Humber Institute of Technology & Advanced Learning)
Day 2 of the Webinar
Technical Session-II: GST and Economy-I
Chair: Prof. Achin Chakraborty (Director, Institute of Development Studies Kolkata)
Dr. Sebastian Morris (Senior Professor, Goa Institute of Management) Co-authored by
Dr. Ajay Pandey (Professor, IIM Ahmedabad)
Dr. Sobhesh Agarwalla (Professor, IIM Ahmedabad)
Dr. Astha Agarwalla (Professor, Adani Institute of Management, Ahmedabad)
2. Burden of Uniform Tax Rate on Household Consumption Expenditure: A Study of GST in India
Dr.Parma chakravartti (Assistant Professor, GIFT)
Dr. Zakaria Siddiqui (Associate Professor, GIFT)
3. Impact of GST on Inflation: Evidence from Causal Analysis
Dr. Anoop S Kumar (Assistant Professor, GIFT) Co-authored by
Dr. Santosh K Dash (Assistant Professor, GIFT)
Panel Discussion-IV: GST: lessons from International Experience-II
Chair: Prof Nanak Kakwani (Honorary Distinguished Fellow, GIFT)
1. GST in New Zealand, 35 Years' Experience
Adv. Dave Ananth and Patrick Wilson
2. Goods and Services Tax: Australian experience and comparative analysis
Prof Binh Tran Nam (UNSW Business School, Sydney)
Prof Yan Xu (UNSW Business School, Sydney)
3. Malaysian experience of Goods and Services Tax
Jalbir Singh Riar(Ernst and Young Tax Consultants, Sdn Bhd Malaysia)
Technical Session III-GST and state level experience
Chair: Shri R Mohan IRS, Honorary Fellow, GIFT
1. Odisha's Fiscal Management in the GST Regime
Dr. Amarendra Das (Reader-F [Economics], NISER, Bhubaneswar),
2. State Finances in Post GST Era in Punjab
Dr Sukhwinder Singh (Consultant, 6th State Finance Commission, Govt. of Punjab)
Dr Jatinder Singh (Assistant Professor, Centre for Research in Rural and Industrial Development, Chandigarh)
Raminder Singh (PhD Scholar, Centre for Research in Rural and Industrial Development, Chandigarh)
3. GST and Sustainability: The Indian Experience
Dr. Renjith P S (Assistant Professor, GIFT)
Technical Session IV-GST and Compensation
Chair: Prof Pinaki Chakraborty, Director, NIPFP
1 GST Shortfall- A State-wise Analysis and Way forward
Prof Asif R Mohanty, Centre for Excellence in Fiscal Policy and Taxation, XIM University, Bhuvaneswar
2 Demystifying Integrated GST for Better Revenue to Consuming States
Dr N Ramalingam, Associate Professor, GIFT
Discussant: Dr. Zakaria Siddiqui, Associate Professor, GIFT
PhD students of GIFT were the Rapporteurs of the programme. Smt Anitha Kumary L, Associate Professor and Dr Santhosh Kumar Dash, Assistant Professor, GIFT coordinated the seminar.
2. Reimagining innovation system for Covid 19 and post Covid-19 world
GLOBELICS-INDIALICS in association with GIFT and KHALSA College Patiala organised three days Seminar on Reimagining Innovation System for Covid 19 and Post Covid-19 World, on October 12 to 14, 2021. National and International experts participated in the Webinar. The scholars include Prof Bengt Ake Lundvall, Prof Keun Lee, Prof Susan Cozzens, Prof Erika Karaemer-Mbula, Prof Michiko lizuka, Prof Anna Kingri, Prof Nandita Mathew, Prof Rasmus Lema, Prof Sujit Bhattacharya, Prof Sachin Chaturvedi, Prof Xiaolan Fu, Prof Raja Rasiah, Prof Mammo Muchie, Prof Da Gabriela Dutrenit, Prof Rainer Walz, Prof Jose Ed uardo Cassiolato, Prof Rasigan Mahara jh, Prof Glenda Kruss, Prof Jeffrey Orozco, Prof Dinesh Abrol, Prof Zhang Liyan, Prof Thamkom Arun, Prof Liyan Zhang, Prof Helena M M Lastres, Prof Papia Sengupta, Prof Angathevar Baskaran, Prof Charles Edquist, Prof Edward Lorenz, Prof Claudia De Fuentes, Prof K J Joseph and Prof Lakhwinder Singh.
B. Public lecture series: Kerala economy in transition
1. Lecture No.12 -(GIFT and KEA) 'Making of the Kerala model'
Prof. Micheal Tharakan, Kerala Council for Historic Research has presented a lecture in the topic of 'Making of the Kerala Model:Factors and Processes on 8th October 2021.
Abstract:Submission of Malayali Memorial in 1890 in Thiruvithamcore is usually understood as the beginning of conscious public activity for the shaping of a modern Keralam. This Memorial asking for smoother entry of non 'Paradesi' Brahmins into higher bureaucracy was soon overshadowed by a Ezhava Memorial by groups still considered unattended. Not only were these public actions challenging a social structure which was questionable but also they were outcomes of social and economic developments which took shape decades earlier. With political and administrative centralization into Princely States of Thiruvithamcore and Kochi and into the Colonial district of Malabar in the 18th century, a pre-modern social order came to a close. It opened up possibilities for new alignments, such as between (mainly in Princely States) the centralising Monarchy and the superior tenants against the landed baronage. This alignment led, at the onset of demand for increased production, to letting new land into cultivation. The privileged tenants and even lower middle peasantry made use of this opportunity to go in for expansion of cash crop cultivation. Cash crop cultivation was strengthened by the introduction of plantation cultivation by European investment. Coconut and Natural Rubber soon became the routes to commercial prosperity and even rudimentary industrial investment.
The ultimate social sanction of being treated along with the so called highest castes was allowed in another way through acquiring modern education. It ended in a spurt in educational qualifications without much care for educational content and methods. It was accompanied by other 'services' like public health, thereby increasing human development. Those who did not have the initial facilities like finances (for which land was absolutely necessary) and the social sanction for being accepted in mainstream educational and other institutions, were kept out; unless they could get into 'subsidized' institutions run by Missionaries. They gained the benefits only when irrigational technology allowed some of them to be free from bonded labour. It was into such a divided social setting that some public demands took shape all over Keralam. They were for Aikya Keralam because commercial agriculture and industry required a common market, basic land reforms, because even privileged tenants did not yet had land ownership rights, and democratisation of education, because education was considered necessary for an 'ideal' Keralam. It was on the wave created by these demands that the First Communist Ministry was elected. They were not allowed to rule for long and were also kept out of power for nearly a decade; forcing them to go in for a "Rainbow Coalition' in which there were parties not in total agreement with their ideology. Their opponents also congregated into another Coalition. Since both fronts have to work within the Constitutional restrictions and political moderation they both concentrated in Welfare programmes, without hampering Human Development Index (HDI). Nevertheless, the inbuilt economic and social division in the pre-independence days was not erased completely. As a result, even when Keralam became a fast growing region with high HDI, inequalities are also on the increase. In the last State elections, it looks that adding Care to Welfare had helped the Ruling dispensation to win for a second time. Whether the care element will be seen as a rights issue or it will turn out to be the beginning of a new round of "care-competition" is to be seen.
Prof Dileep Menon, Director, Centre for Indian Studies in Africa, University of Witwatersand moderated the discussion. Dr.Justin Mathew, Assistant Professor, Hansraj College, University of Delhi was the discussant of the programme. Professor K J. Joseph, Director, GIFT and President, KEA , delivered the welcome address. GIFT Faculty, KEA Executive members and many distinguished academicians and students in Kerala and from outside Kerala participated in the webinar. Prof Hari Kumar , KEA proposed the vote of thanks to the programme. . Smt Anitha Kumary L, Associate Professor , Prof Hari Kumar, KEA, Prof Sheeja S R and Dr Anoop S Kumar, Assistant Professor, GIFT were the coordinators of the programme.
2. Lecture No.13 -(GIFT and KEA) 'Social process in the making of Kerala model'
Prof. K N Ganesh, Former Head, Department of History, Calicut University, presented the lecture on 'Making of modern Keralam: The social processes that gave rise to the Kerala' on 22nd October 2021.
Abstract: Pre-Modern Keralam shared the basic features of the rest of India, including jati formation, landlord-tenant relations and forms of power based on territorial chiefdoms. Being the coastal region that became part of the Indian Ocean trade networks, it also developed a chain of ports of trade and local trade networks that linked the linked the local resources with the Indian Ocean trade. European colonial expansion systematically eliminated the links with the Indian Ocean trade , which was subsumed under the East India company trade. With the British conquest, landlord tenant relations and territorial chiefdoms were brought under the revenue settlements of the colonial administration , with a novel form of the 'rule of property', which also made effectively made use of the jati formation to keep the labouring poor under subjugation and also develop a servile middle class from the dominant castes.
The presentation addresses the question of how the social relations emerging under the British rule gave rise to new social contradictions and conflicts and gave rise to the social configuration of Modern Keralam. The first feature of these conflicts was the upsurge of the labouring castes against the dominant castes , territorial chiefdoms and the colonial state, which later consolidated into the organisations of the workers, peasants, women, Dalits and other sections of the population. The second has been the enthusiastic reception of what has been called the elements of ' quality of life' including education, health , and other indices of the standard of living including population control by the labouring population , including substantial changes in language , communication and the growth of a 'public sphere' . Subtle shifts in the legal and authoritative frameworks under colonialism also introduced changes in the familial frameworks, forms of inheritance and also facilitated population movements. The social indices of the growth of modern Keralam thus should be seen as the result of the assertion of labouring groups, which has been a unique feature of Keralam, when compared to other parts of India. How far did the transformation of the Kerala society under colonialism contribute these changes is a matter to be further explored.. This resulted in inevitable conflicts with the prevailing economic structures and forms of Governance, which continue to have their impact even today.
Prof Arunima, Director, Kerala Council for Historical Research moderated the discussion. Dr.Abhilash Malayil, Assistant Professor, Sree Sankaracharya University of Sanskrit was the discussant of the programme. Professor K J. Joseph, Director, GIFT and President, KEA delivered the welcome address. GIFT Faculty, KEA Executive members and many distinguished academicians and students in Kerala and from outside Kerala participated in the webinar. Smt Anitha Kumary, Associate Professor and Executive member , KEA proposed the vote of thanks to the programme. Smt Anitha Kumary L, Associate Professor , Prof Hari Kumar, KEA, Prof Sheeja S R and Dr Anoop S Kumar, Assistant Professor, GIFT were the coordinators of the programme.
3. Lecture No.14 -(GIFT and KEA) 'Sectoral performance : Primary sector
Prof. Rama Kumar, School of Development Studies, Tata Institute of Social Sciences, Mumbai presented the lecture on 'Kerala's Agricultural Economy: Some Thoughts on Challenges and the Future Policy on 19th November 2021.
Abstract: Contribution of agriculture in the Gross State Domestic Production ( GSDP) of Kerala is roughly 10 per cent and it shows a declining trend for the last 15 years, because of the multiplicity of jobs, agriculture is a part time affair in Kerala. This has affected the quality of agricultural production and productivity in the state, compared to other Indian states. There is also a shift of land from agriculture to non agriculture purposes like residential and commercial over a period of time. This is one of the reasons for the high land value in the rural parts of the state, compared to all India level. In seventies more 9-10 lakh hactres were dedicated to the production of food grains in Kerala, but now it is not more than 2.5 hactares.
There is also a major shift in the cropping pattern of Kerala over last four decades. Fragmentation of land is also a serious problem for the development of agriculture sector of the state . Poor level of productivity and imbalances in fertilisation are also serious issues. Kerala is the lowest fertiliser consumption state in India. There is sharp fall in the per hectare fertiliser consumption in the state between 2011 and 2019. During 1987 -1997 period, Kerala registered 4.96 per cent compound annual growth in agriculture sector, however during 1997 - 2005 period flat growth observed. Lately, there is serious absolute decline between 2011 and 2015.Then there is stagnation in the agri sector of the state, he added. Kerala's agriculture is the poorest performing one in the country . Paddy production remains almost stagnant at 5.5 million tones over the last decade and production of Pepper and ginger also dropped. Natural rubber production also shows a declining trend.
Prof K Pushpangadan, , Honorary fellow of GIFT, who moderated the session.. Shri Deepak Mercy Johnson, . Research scholar, Indian Statistical Institute , Bangaluru center was the discussant of the programme., Professor M.A.Oommen and Dr. Mary George also spoke on the occasion. Professor K J. Joseph, Director, GIFT and President, KEA delivered the welcome address. GIFT Faculty, KEA Executive members and many distinguished academicians and students in Kerala and from outside Kerala participated in the webinar. Prof Hari Kumar , KEA proposed the vote of thanks to the programme. Smt Anitha Kumary L, Associate Professor , Prof Hari Kumar, KEA, Prof Sheeja S R and Dr Anoop S Kumar, Assistant Professor, GIFT were the coordinators of the programme.
4. Lecture No.15 -(GIFT and KEA) 'Sectoral performance : Secondary sector
Prof. Jayan Jose Thomas, Humanities and Social Sciences, Indian Institute of Technology, Delhi presented the lecture on 'Can Knowledge Drive Kerala's Future Industrial Growth? on 3 December 2021.
Abstract:Kerala aims to leverage its social sector achievements for future economic growth, especially growth led by knowledge industries. However, the challenges are enormous. The size of the working age population in the state is expected to shrink during the 2020s itself, almost two decades before such a decline is to be registered at the national level. Kerala as a region is not suitable for industries that are based almost exclusively on the easy availability and low wages of less-skilled workers. In fact, Kerala does not have to join the race with other Indian states to improve the 'ease of doing business' indicators, if such competition may erode the state's achievements in the social spheres. On the other hand, Kerala should chalk out a plan for knowledge-led economic growth, drawing on the skills and resources of its educated youth, its universities and research institutions, and of the diaspora of professionals and entrepreneurs from Kerala spread all over the world. Some of the sectors in which Kerala has huge potential for future growth include the healthcare industry, life sciences, biotechnology, pharmaceuticals, space and aeronautical technologies, and artificial intelligence. The limited financial autonomy for the state government remains an important hurdle. Kerala will have to build institutions that can help mobilize the considerably large savings in its economy into investments that are urgently needed for its future growth (including investments in modern transport facilities and new research centres). Also required are institutions to plan and implement the strategy to build a modern industrial sector.
Dr Beena, Associate Professor, Centre for Development Studies who moderated the session.. Shri Hemant Kumar R, Principal, Ettumanoorappan College, Kottayam was the discussant of the programme., Professor K J. Joseph, Director, GIFT and President, KEA , delivered the welcome address. GIFT Faculty, KEA Executive members and many distinguished academicians and students in Kerala and from outside Kerala participated in the webinar. Smt Anitha Kumary, Associate Professor and Executive member , KEA proposed the vote of thanks to the programme. Smt Anitha Kumary L, Associate Professor , Prof Hari Kumar, KEA, Prof Sheeja S R and Dr Anoop S Kumar, Assistant Professor, GIFT were the coordinators of the programme.
5. Lecture No.16 -(GIFT and KEA) 'Sectoral performance : Secondary sector
Shri Balagopal Chandrasekhar, Investor, Mentor, Writer and Trustee -ANAHA delivered the lecture on 'Can Kerala become the Taiwan of India? on 17 December 2021.
Abstract : The discourse on the Kerala economy is usually framed in the context of the so-called Kerala Model, which is contrasted with the 'model' presumably followed by other States and the country since 1947. The Kerala Model is said to be one of primary focus on social development, neglecting productive sectors. While conceding that there have been impressive gains on the social development front, the view is that this 'model' is unsustainable, and is responsible for a variety of alleged weaknesses of the Kerala economy. These include the slow growth and even decline of output of the primary and secondary sectors, while it is the tertiary sector alone that has shown growth. This leads to high unemployment, leading to many people having to seek employment outside the State and even the country. Another argument is that the growth of external remittances in the last two decades of the last century actually caused the decline of the tradeables sectors, while leading to the growth of the non-tradables sector, the 'Dutch Disease' argument.
The evidence emerging now is that while the traditional manufacturing sector has indeed declined substantially, several small enterprises set up in the last three decades have grown organically over the years to become significant enterprises today, employing several hundreds of skilled people and producing goods that are exported to other regions in the country, and overseas. These were set up by entrepreneurs with little experience in the modern manufacturing industry, and using hi-tech methods and processes. They required skilled technically qualified people, who were available locally. They did not require substantial investment to set up, and grew as business developed. They were obviously able to take advantage of favourable factors present in the local business ecosystem that enabled such enterprises to get going. These enterprises stress R&D and innovation, and many have good links with research institutions. This process continues to this day, and actually can be said to be gathering momentum. This phenomenon represents the emergence of a modern manufacturing sector taking advantage of favourable factors created by the 'model' that is generally criticised as holding Kerala back. This is also to be noticed in a section of the traditional manufacturing sector that has sought to modernise. Therefore, a structural transformation has been happening unnoticed in the manufacturing sector, creating enterprises that are viable, growing, and employ large numbers of skilled people.
The trend is now further supported by the start up ecosystem that was created in the State over the past few years as part of deliberate policy, through the agency of the Kerala Start up Mission (K-SUM). This has resulted in many start ups emerging from the technology business incubators in various parts of the State, that have attracted the attention of investors. The growth of PE and VC investments in such startups has steadily grown from less than $ 10 million in 2014 to over $ 150 million last year.
Together, these two streams signal the emergence of an MSME cohort in the manufacturing sector in Kerala that is suited to the factor endowments of the State, and is positioned to take advantage of the emergence of favourable factors based on high HDI, good connectivity, high urbanisation, and good governance. So, perhaps we are seeing the positive effects (with a lag) of investment in social development, creating a population that enjoys universal education, good public health programs, social welfare programs, and very low incidence of Multi-Dimensional Poverty. This could perhaps be the validation of the Kerala Model that we have been waiting for.
Dr Christabell P J , Associate Professor, Department of Economics, University of who moderated the session.. Dr M Parameswaran, Associate Professor, Centre for Development Studies was the discussant of the programme., Professor K J. Joseph, Director, GIFT and President, KEA , delivered the welcome address. GIFT Faculty, KEA Executive members and many distinguished academicians and students in Kerala and from outside Kerala participated in the webinar. Prof Hari Kumar , KEA proposed the vote of thanks to the programme. Smt Anitha Kumary L, Associate Professor, Prof Hari Kumar, KEA, Prof Sheeja S R and Dr Anoop S Kumar, Assistant Professor, GIFT were the coordinators of the programme.
Gulati Institute of Finance and Taxation