Former Bihar deputy chief minister Sushil Modi’s demise at the age of 72 on Tuesday left a void among his political peers, bureaucrats who knew him and journalists who would reach out to him to understand the complexities involved in the Goods and Services Tax (GST), the country’s biggest indirect tax reform.
A key player who worked closely with then Union finance minister Arun Jaitley to roll out GST in July 2017, Sushil Modi was very amiable, soft-spoken and extremely patient even when conversing on technical aspects of GST.
In November 2017, a few months after the GST roll-out in July, there was a major overhaul of tax rates. Modi played an important role in the GST Council’s decision to bring down the tax rate of 177 mass consumption items from 28% to 18%.
An old-school politician, Modi refrained from explicitly apportioning blame for something that wasn’t quite going right but he was also adept at dropping hints and allowing journalists to discover the truth.
“Though politically we differed, that didn’t prevent a very cordial relationship. I also remember him as a very polite and civil person with whom you could have a rational argument,” said Thomas Isaac, former Kerala finance minister and a member of the pre-GST-era empowered committee of state finance ministers on GST. Both later served as members of the GST Council.
“Modi tried very much to reach a consensus always. Therefore, on many issues as the chairperson of the empowered committee (during 2011-2013), he could reach an agreement,” Isaac said.
His interventions were carefully prepared after homework. Therefore, whatever he said in the council used to be keenly attended to by all the members, Isaac added.
“Modi was a very patient listener with a very good understanding of things. He had a great ability to forge a consensus owing to his openness to reason and constructive approach,” said Vivek Johri, former chairman of the Central Board of Indirect Taxes and Customs.
“He always kept the interest of small taxpayers in the forefront,” said Johri, who was closely associated with the roll-out of the GST and its implementation.
Having vast experience in indirect taxation — he had overseen the roll-out of VAT in Bihar in 2005. Combined with his erudition, Modi always had a fresh perspective on any topic within the indirect tax regime.
“As finance minister of Bihar, his participation in the @GST_Council was well-informed and thoughtful. He took a keen interest in debates, particularly on fiscal matters,” union finance minister Nirmala Sitharaman said in a post on ‘X’.
Modi, who played an important role in bringing Bihar’s finances in order, wore many hats. He was deputy chief minister of the state (also finance minister) during 2005-2013 and 2017-2020. He was a member of the Rajya Sabha from 2020 to 2024.
“I have had the good fortune of working very closely with Shri Sushil Modi ji, particularly during the early days of the GST Council. He commanded respect across the political spectrum and displayed a remarkable ability to absorb various shades of opinion. His humble demeanour would at times veil the gigantic wisdom and knowledge he possessed,” said Himanta Biswa Sarma, the chief minister of Assam.