Shimla: Himachal Pradesh Governor Shiv Pratap Shukla on Friday said that the Goods and Services Tax (GST) has unified India’s indirect tax regime and significantly strengthened cooperative federalism, describing it as one of the most important fiscal reforms in independent India.
Addressing the inaugural session of a two-day International Conference on “Tax Reforms in India: Challenges and Prospects,” sponsored by the Indian Council of Social Science Research at Himachal Pradesh National Law University (HPNLU), Shimla, the Governor said that tax policy plays a crucial role in mobilising national resources for development, welfare schemes and infrastructure creation.
He stated that an effective tax system forms the foundation of economic justice, social inclusion and good governance. “Taxation is not merely a means of revenue collection but a mechanism that builds trust, accountability and transparency between the State and its citizens,” he said.
Highlighting the transformation brought about by GST, the Governor noted that the reform replaced multiple indirect taxes with a single unified system, thereby reducing cascading effects and improving ease of doing business. He added that GST stands as a practical example of cooperative federalism, where the Centre and States work together through institutional mechanisms to take key fiscal decisions.
Tracing the evolution of India’s tax structure since Independence, he observed that major reforms, especially after economic liberalisation, were aimed at simplifying procedures and increasing transparency. Referring to initiatives such as Vivad se Vishwas, he said such schemes reflect a trust-based and participatory approach to tax administration.
Quoting Acharya Chanakya’s Arthashastra, the Governor emphasised that taxation should be just, balanced and welfare-oriented. A fair tax system, he said, must promote production and shared prosperity rather than impose undue burdens on citizens. He described GST as a contemporary reform aligned with these principles and supportive of inclusive and sustainable development.
Vice-Chancellor Prof. Priti Saxena welcomed the Governor and outlined the themes of the conference. Keynote speaker Prof. Nigam Nuggehalli, Professor and Registrar at National Law School of India University, Bengaluru, stressed the need for continuous adaptation of tax reforms like GST in response to evolving economic conditions.
Conference Convener Prof. Girijesh Shukla spoke about modernisation efforts in tax administration, including digitisation and AI-driven analytics to enhance compliance and efficiency. Registrar Prof. Alok Kumar proposed the vote of thanks.
Earlier, the Governor inaugurated the newly designed HPNLU litigation lab and a Blood Donation Camp organised by the Youth Red Cross of the University. Rameshwar Singh Thakur, Chairman of the Himachal Pradesh Public Service Commission, along with academicians, delegates and students, was present on the occasion.
