Gross GST mop-up rises 6.5 pc to Rs 1.86 lakh cr in August

Gross GST mop-up rises 6.5 pc to Rs 1.86 lakh cr in AugustGSTDated:- 1-9-2025PTINew Delhi, Sep 1 (PTI) Gross GST collection increased 6.5 per cent to over Rs 1.86 lakh crore in August on higher domestic revenues, as per government data released on Monday.

Gross GST mop-up rises 6.5 pc to Rs 1.86 lakh cr in August
GST
Dated:- 1-9-2025
PTI
New Delhi, Sep 1 (PTI) Gross GST collection increased 6.5 per cent to over Rs 1.86 lakh crore in August on higher domestic revenues, as per government data released on Monday.
Gross Goods and Services Tax (GST) mop-up was Rs 1.75 lakh crore in August 2024. Last month, the collection was Rs 1.96 lakh crore.
The gross domestic revenue grew 9.6 per cent to Rs 1.37 lakh crore, while tax from imports d

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DGGI Belagavi Zonal Unit uncovers fraud involving issuance of fake GST invoices of around Rs. 145 crore and tax evasion of Rs. 43 crore; one arrested

DGGI Belagavi Zonal Unit uncovers fraud involving issuance of fake GST invoices of around Rs. 145 crore and tax evasion of Rs. 43 crore; one arrestedGSTDated:- 1-9-2025The Directorate General of GST Intelligence (DGGI), Belagavi Zonal Unit has registered

DGGI Belagavi Zonal Unit uncovers fraud involving issuance of fake GST invoices of around Rs. 145 crore and tax evasion of Rs. 43 crore; one arrested
GST
Dated:- 1-9-2025

The Directorate General of GST Intelligence (DGGI), Belagavi Zonal Unit has registered a case and uncovered a GST fraud involving issuance of fake invoices valued at approximately Rs 145 crore, resulting in alleged tax evasion of about Rs 43 crore. One individual has been arrested in connection with the case.
Prel

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Petition dismissed as not maintainable; statutory appellate remedy under C.G.S.T./W.B.G.S.T. Act 2017 is exclusive; file appeal within 60 days.

Petition dismissed as not maintainable; statutory appellate remedy under C.G.S.T./W.B.G.S.T. Act 2017 is exclusive; file appeal within 60 days.Case-LawsGSTThe HC dismissed the petition for lack of maintainability, holding the statutory appellate remedy un

Petition dismissed as not maintainable; statutory appellate remedy under C.G.S.T./W.B.G.S.T. Act 2017 is exclusive; file appeal within 60 days.
Case-Laws
GST
The HC dismissed the petition for lack of maintainability, holding the statutory appellate remedy under the C.G.S.T./W.B.G.S.T. Act, 2017 to be efficacious and exclusive; therefore the court declined to exercise discretionary jurisdiction to entertain the challenge to levy of tax, interest and penalty. The court affirmed refusal to permit the Appellant to bypass the appellate forum, noting the appellate authority can examine records, access relevant portals and afford an effective personal hearing. The petition was dismissed and the Appellant directed to file a statutory appeal before the appellate authority within 60 days from receipt of the server copy of this judgment; such appeal shall be entertained without reference to limitation, subject to compliance with other conditions.
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Writ quashes adjudication order where late ITC claim reconciled from revenue records; adjudication lacked basis

Writ quashes adjudication order where late ITC claim reconciled from revenue records; adjudication lacked basisCase-LawsGSTHC issues writ of certiorari quashing the adjudication order of respondent authorities and allows the petition. The court held that

Writ quashes adjudication order where late ITC claim reconciled from revenue records; adjudication lacked basis
Case-Laws
GST
HC issues writ of certiorari quashing the adjudication order of respondent authorities and allows the petition. The court held that non-claim of ITC in 2018-19 and its subsequent claim in 2019-20 (including RCM amounts) could be reconciled from records already in the possession of the Revenue, and such reconciliation did not hinge on the petitioner's response to the show-cause notice. Consequently, the impugned adjudication lacked basis and was set aside. The adjudicatory order of respondent No.2 is quashed and the petition is allowed.
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Petition allowed under Section 74 UP VAT Act; matter remanded for fresh assessment and verification of transactional records

Petition allowed under Section 74 UP VAT Act; matter remanded for fresh assessment and verification of transactional recordsCase-LawsGSTThe HC allowed the petition under section 74 of the UP VAT Act and remanded the matter for fresh consideration. The cou

Petition allowed under Section 74 UP VAT Act; matter remanded for fresh assessment and verification of transactional records
Case-Laws
GST
The HC allowed the petition under section 74 of the UP VAT Act and remanded the matter for fresh consideration. The court held that the petitioner failed to adduce material proving payment through banking channels, yet the initiation of proceedings rested on a subsequent physical inspection finding the selling dealer absent despite contemporaneous filings (GSTR-1/3B) evidencing returns and tax payment. Absent any recorded finding of fraud, wilful misstatement or suppression to evade tax, section 74 could not be validly invoked. The HC directed the assessing authority to verify transactional records on statutory portals and reconsider assessment in accordance with law and applicable procedural circulars.
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Appellate order, revocation dismissal and registration cancellation set aside for breach of natural justice; remitted for fresh show-cause and hearing

Appellate order, revocation dismissal and registration cancellation set aside for breach of natural justice; remitted for fresh show-cause and hearingCase-LawsGSTThe HC quashed and set aside the Appellate Order, the dismissal of the revocation application

Appellate order, revocation dismissal and registration cancellation set aside for breach of natural justice; remitted for fresh show-cause and hearing
Case-Laws
GST
The HC quashed and set aside the Appellate Order, the dismissal of the revocation application and the order of cancellation of registration, finding a breach of the principles of natural justice in that no hearing was afforded and the notices and orders lacked reasons. The matter is remitted with liberty to R2 to issue a fresh show-cause notice specifying particulars and reasons, to afford P a reasonable opportunity of hearing, and thereafter to pass a reasoned speaking order on the merits. The petition is allowed solely on natural justice grounds, following the Court's analogous reasoning in the coordinate bench authority.
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Section 129(3) GST challenge dismissed where e-way bill generated after interception, showing non-compliance and upholding seizure and penalty

Section 129(3) GST challenge dismissed where e-way bill generated after interception, showing non-compliance and upholding seizure and penaltyCase-LawsGSTThe HC dismissed the petition challenging action under section 129(3) of the GST Act, holding that al

Section 129(3) GST challenge dismissed where e-way bill generated after interception, showing non-compliance and upholding seizure and penalty
Case-Laws
GST
The HC dismissed the petition challenging action under section 129(3) of the GST Act, holding that although an e-way bill was ultimately produced before the seizure and penalty orders, it was not generated contemporaneously with movement and was created after interception (at 1:19 p.m.), evidencing non-compliance with statutory requirements; accordingly, the court found no basis to infer absence of intent to evade tax or to disturb the impugned orders. The court applied its prior ratio and upheld the seizure and penalty, concluding that, on the facts and in law, no interference with the administrative orders was warranted.
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Provisional attachment lapsed after one year; repeated reattachments without law quashed, bank account to be unfrozen within three days

Provisional attachment lapsed after one year; repeated reattachments without law quashed, bank account to be unfrozen within three daysCase-LawsGSTHC held that the initial provisional attachment order ceased by efflux of time after one year and, in absenc

Provisional attachment lapsed after one year; repeated reattachments without law quashed, bank account to be unfrozen within three days
Case-Laws
GST
HC held that the initial provisional attachment order ceased by efflux of time after one year and, in absence of statutory authority for renewal or re-issuance, executive authorities lack power to impose provisional attachment repeatedly; such repetition amounts to executive overreach. The impugned order dated 1 May 2025 effecting a fourth attachment of the petitioner's bank account is quashed and set aside. The authorities are directed to de-freeze the petitioner's bank account forthwith, and in any event within three days from the date of the order. The petition is disposed of.
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Delhi to disburse Rs 1,600 cr pending GST refunds to traders before Diwali: CM Gupta

Delhi to disburse Rs 1,600 cr pending GST refunds to traders before Diwali: CM GuptaGSTDated:- 31-8-2025PTINew Delhi, Aug 31 (PTI) Delhi Chief Minister Rekha Gupta on Sunday announced that nearly Rs 1,600 crore in GST refunds pending since 2019 will be re

Delhi to disburse Rs 1,600 cr pending GST refunds to traders before Diwali: CM Gupta
GST
Dated:- 31-8-2025
PTI
New Delhi, Aug 31 (PTI) Delhi Chief Minister Rekha Gupta on Sunday announced that nearly Rs 1,600 crore in GST refunds pending since 2019 will be released before Diwali, enabling traders to celebrate the festival with greater joy and prosperity.
The chief minister on Sunday convened a special meeting of the Department of Trade and Taxes (GST) at her camp office in Civil Lines, which was attended by GST Commissioner Nandini Paliwal, Finance Secretary Shurveer Singh, and other senior officials of the department.
Claiming that the previous (AAP) government failed to take any concrete measures towards the settlement of th

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DGGI officers detect Rs 43 cr GST evasion in fake invoice case

DGGI officers detect Rs 43 cr GST evasion in fake invoice caseGSTDated:- 30-8-2025PTINew Delhi, Aug 30 (PTI) GST Intelligence wing has uncovered a fraud involving issuance of fake invoices valued at Rs 145 crore, resulting in alleged tax evasion of about

DGGI officers detect Rs 43 cr GST evasion in fake invoice case
GST
Dated:- 30-8-2025
PTI
New Delhi, Aug 30 (PTI) GST Intelligence wing has uncovered a fraud involving issuance of fake invoices valued at Rs 145 crore, resulting in alleged tax evasion of about Rs 43 crore, and arrested one person, the finance ministry said on Saturday.
Preliminary findings of the case detected by the Directorate General of GST Intelligence (DGGI), Belagavi Zonal Unit, indicate that a group of people c

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Professional body urges GST admin reforms: fixed reply timelines, mandatory virtual hearings, dual electronic/physical notices, unified case IDs

Professional body urges GST admin reforms: fixed reply timelines, mandatory virtual hearings, dual electronic/physical notices, unified case IDsNewsGSTA professional body has submitted comprehensive recommendations to improve GST administration, urging fi

Professional body urges GST admin reforms: fixed reply timelines, mandatory virtual hearings, dual electronic/physical notices, unified case IDs
News
GST
A professional body has submitted comprehensive recommendations to improve GST administration, urging fixed reply periods for pre-notice intimations, mandatory virtual hearing compliance, dual electronic/physical service of notices, reliance on portal records (with limited physical submissions), a unified case-tracking ID and draft/save features, separate adjudication and portal access for personal penalties, and strict adherence to conveyance detention procedures. It also seeks operational fixes for ITC distribution, enhanced GSTR-2B functionality, automatic restoration of ITC after withdrawn cancellation, clearer registration jurisdiction and amendment workflows, legacy-proceedings migration on reorganization, streamlined integrated company-GST onboarding, online TDS cancellation, faceless/time-bound refunds, and e-way bill fields for ultimate recipients.
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ComMin working on short, medium, long-term steps to shield exporters from US tariffs

ComMin working on short, medium, long-term steps to shield exporters from US tariffsGSTDated:- 30-8-2025PTINew Delhi, Aug 30 (PTI) The Commerce Ministry is working on short, medium, and long-term action plans to help exporters deal with the steep 50 per c

ComMin working on short, medium, long-term steps to shield exporters from US tariffs
GST
Dated:- 30-8-2025
PTI
New Delhi, Aug 30 (PTI) The Commerce Ministry is working on short, medium, and long-term action plans to help exporters deal with the steep 50 per cent US tariffs imposed on Indian goods entering Washington, an official said.
Several special economic zone policy flexibility norms are also under consideration, the official said.
The government is also operationalising E-commerce export hubs with simplified return logistics, easier inter-state movement and GST refunds.
“Alongside, the inventory model for e-commerce exports would allow third-party facilitation entities to manage compliance and logistics, easing the b

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share (10.4 per cent) of GDP (USD 4.12 trillion) and with limited value addition in some sectors.
As part of the immediate or short-term response, the government is considering several steps to ease liquidity, prevent insolvencies, and provide greater flexibility for units in SEZs, and promote targeted import substitution.
In the medium term, the official said, the focus will shift towards leveraging India's free trade agreements (FTAs), intensifying buyer-seller outreach, and strengthening GST reforms to enhance competitiveness.
To increase utilisation of these agreements, the commerce ministry is planning intensified outreach on FTA benefits as many MSMEs remain unaware of specific tariff advantages; large-scale buyer-seller meets i

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he government is considering several steps.
The proposed GST rationalisation is expected to generate demand in the domestic market and this has the potential of not only creating opportunities for exporters to sell more in India to cater to this increased demand.
Further, the ministry has prepared a phased export diversification framework in response to US tariffs, mapping critical HS (harmonised system) codes, clusters, and alternate markets.
This strategy is two-pronged – scaling up exports to existing markets like the EU, UK, UAE, Japan, Canada, and Australia; and entering new and untapped markets in Latin America, Africa, Eastern Europe, and East Asia.
“The Government of India is proactively responding with a timely, well-calibr

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GST Council meet should not be for headline grabbing, must advance cooperative federalism: Cong

GST Council meet should not be for headline grabbing, must advance cooperative federalism: CongGSTDated:- 30-8-2025PTINew Delhi, Aug 30 (PTI) Opposition-ruled states have extended their support to cut the number of GST rate slabs and the rates for mass co

GST Council meet should not be for headline grabbing, must advance cooperative federalism: Cong
GST
Dated:- 30-8-2025
PTI
New Delhi, Aug 30 (PTI) Opposition-ruled states have extended their support to cut the number of GST rate slabs and the rates for mass consumption items, while demanding a mechanism to ensure the benefits get passed on to consumers, Congress leader Jairam Ramesh said on Saturday.
He also said the Congress hopes that next week's GST Council meeting would not be just a “headline-grabbing exercise so typical of the (Narendra) Modi government”. According to Ramesh, the eight opposition-ruled states have also demanded compensation to all states for a period of five years, with 2024-25 as the base year, since the

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ase year, since their revenues are bound to be adversely impacted by the rate cuts, Ramesh said.
The eight opposition-ruled states have also called for additional levies on 'sin' and luxury goods over and above the proposed 40% be fully transferred to states, he said, adding the Centre gets close to 17-18% of its revenue from various cesses that are not shared with the states.
The Congress leader stressed that these demands are perfectly legitimate and are bolstered by recent papers published by the Union Finance Ministry's own National Institute of Public Finance & Policy (NIPFP).
According to him, the Congress has for long been demanding a GST 2.0 that not only reduces rate slabs and cuts rates but also brings about drastic simplificat

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Eight opposition-ruled states extend support to cut in number of GST rate slabs: Cong’s Ramesh

Eight opposition-ruled states extend support to cut in number of GST rate slabs: Cong’s RameshGSTDated:- 30-8-2025PTINew Delhi, Aug 30 (PTI) Eight opposition-ruled states have extended their support to a reduction in the number of GST rate slabs and a cut

Eight opposition-ruled states extend support to cut in number of GST rate slabs: Cong's Ramesh
GST
Dated:- 30-8-2025
PTI
New Delhi, Aug 30 (PTI) Eight opposition-ruled states have extended their support to a reduction in the number of GST rate slabs and a cut in the rates for mass consumption items, Congress leader Jairam Ramesh said on Saturday.
At the same time, they have demanded a mechanism to ensure the benefits of the rate cuts get passed on to consumers, he said.
According to Ramesh, the eight opposition-ruled states have also demanded compensation to all states for a period of five years, with 2024-25 as the base year, since their revenues are bound to be adversely impacted by the rate cuts.
They have demanded additio

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aid.
The eight opposition-ruled states have also called for additional levies on 'sin' and luxury goods over and above the proposed 40% be fully transferred to states, he said, adding the Centre gets close to 17-18% of its revenue from various cesses that are not shared with the states.
The Congress leader stressed that these demands are perfectly legitimate and are bolstered by recent papers published by the Union Finance Ministry's own National Institute of Public Finance & Policy (NIPFP).
According to him, the Congress has for long been demanding a GST 2.0 that not only reduces rate slabs and cuts rates but also brings about drastic simplification of procedures and compliance requirements, especially for MSMEs.
Ramesh further said th

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Transport Commissioner ordered to review petitioner’s 12.06.2025 letter, specify discrepancies and grounds for any bill deductions

Transport Commissioner ordered to review petitioner’s 12.06.2025 letter, specify discrepancies and grounds for any bill deductionsCase-LawsGSTThe HC disposed of the writ petition and directed the Transport Commissioner to consider the petitioner’s letter

Transport Commissioner ordered to review petitioner's 12.06.2025 letter, specify discrepancies and grounds for any bill deductions
Case-Laws
GST
The HC disposed of the writ petition and directed the Transport Commissioner to consider the petitioner's letter dated 12.06.2025 and, within four weeks of production of a certified copy of this order, to communicate to the petitioner any discrepancies found in the contractor's performance and the necessity for deductions from the petitioner's bills. The communication must specify detailed reasons and the factual and contractual basis for concluding that deductions are warranted. The writ is disposed of subject to compliance with this direction, with liberty to the petitioner to challenge the Commissioner's communicated findings by appropriate proceedings if aggrieved.
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s.168 CGST empowers binding instructions; violations make orders voidable, not void ab initio; orders remain operative until quashed

s.168 CGST empowers binding instructions; violations make orders voidable, not void ab initio; orders remain operative until quashedCase-LawsGSTThe HC dismissed the writ petitions and declined to interfere with the impugned assessment orders; the court he

s.168 CGST empowers binding instructions; violations make orders voidable, not void ab initio; orders remain operative until quashed
Case-Laws
GST
The HC dismissed the writ petitions and declined to interfere with the impugned assessment orders; the court held that s.168 CGST merely empowers issuance of binding instructions to tax authorities and mere violation of such instructions renders orders invalidable but not void ab initio, thus remaining operative until set aside by a competent forum. The absence of a Document Identification Number on orders uploaded to the portal does not ipso facto vitiate service in the absence of a statutory prescription; CBIC circulars are administrative instructions and cannot confer nullity. Petitioners' unexplained delay invoked laches and precluded relief, so the assessment orders continue to operate unless and until quashed by appropriate adjudication.
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Decree-holder not liable to pay 18% GST on interest received under arbitral award; execution direction quashed

Decree-holder not liable to pay 18% GST on interest received under arbitral award; execution direction quashedCase-LawsGSTThe HC allowed the petition and quashed and set aside the impugned direction of the executing court that the judgment-debtor pay GST

Decree-holder not liable to pay 18% GST on interest received under arbitral award; execution direction quashed
Case-Laws
GST
The HC allowed the petition and quashed and set aside the impugned direction of the executing court that the judgment-debtor pay GST at 18% on part-payment of interest under an arbitral award. The court held that decree-holders are not liable to pay GST on the interest component received pursuant to execution of the arbitral award, in line with the Advance Ruling Authority's determination. Consequential directions for GST payment were annulled, and the impugned orders dated 02.08.2020 were set aside. The petition is disposed of, with no requirement for the decree-holder to remit GST on the said interest receipts.
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Petition dismissed challenging show-cause under Section 74 GST: ITC from bona fide purchases accepted; procedural claims denied

Petition dismissed challenging show-cause under Section 74 GST: ITC from bona fide purchases accepted; procedural claims deniedCase-LawsGSTThe HC dismissed the petition challenging a show-cause issued under section 74 of the WBGST/CGST Act. The court foun

Petition dismissed challenging show-cause under Section 74 GST: ITC from bona fide purchases accepted; procedural claims denied
Case-Laws
GST
The HC dismissed the petition challenging a show-cause issued under section 74 of the WBGST/CGST Act. The court found the appellant availed ITC from bona fide purchases which bore no nexus to outward sales, and the adjudicating authority relied on documents disclosed by the petitioner following a search and panchnama at the petitioner's residence. The contention of procedural prejudice for denial of cross-examination of witnesses (truck drivers) and alleged statements made under duress was rejected: none of the witnesses retracted their statements, and the petitioner failed to produce evidence or call those witnesses initially. The court held the onus lay on the petitioner to produce corroborating evidence; allegations of natural justice breach were unfounded. Petition dismissed.
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Proposed GST reforms will bring huge change in India’s trade, commerce: Odisha CM

Proposed GST reforms will bring huge change in India’s trade, commerce: Odisha CMGSTDated:- 29-8-2025PTIBhubaneswar, Aug 29 (PTI) The proposed GST reforms will bring a huge change in trade and commerce in the country, Odisha Chief Minister Mohan Charan Ma

Proposed GST reforms will bring huge change in India's trade, commerce: Odisha CM
GST
Dated:- 29-8-2025
PTI
Bhubaneswar, Aug 29 (PTI) The proposed GST reforms will bring a huge change in trade and commerce in the country, Odisha Chief Minister Mohan Charan Majhi said on Friday.
Addressing the valedictory session of a seminar on 'Viksit Odisha, 2036 Odisha on Growth Path' organised by the Indian Chamber of Commerce and Laghu Udyog Bharati, Majhi said if GST rates are reduced, consumption will increase.
“If consumption increases, there will be more manufacturing, which will enhance employment,” he said.
Majhi said the only goal of his government is to place Odisha among the top five states in the country.
“To achieve this goa

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killed human resources, adequate employment opportunities, technology, tourism and green energy,” he added.
The 'Viksit Odisha 2036' roadmap is based on three principles “People first, prosperity for all and technology-led development”, Majhi said.
He said railway projects worth about Rs 80,000 crore, along with highway and road projects worth more than Rs 12,000 crore, are being implemented in the state.
“Along with this, a few days ago, the Centre announced the Capital Region Ring Road at a cost of Rs 8,308 crore. Besides, the state government will also construct 75,000 km of high-quality roads over the next five years,” he said.
“While there are three major ports in the state, we have set a target of constructing four new ports,” he

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India to grow at 6.3-6.8 pc in FY?26, GST rate cuts to boost consumption, taper tariff shocks: CEA

India to grow at 6.3-6.8 pc in FY?26, GST rate cuts to boost consumption, taper tariff shocks: CEAGSTDated:- 29-8-2025PTINew Delhi, Aug 29 (PTI) Chief Economic Advisor V Anantha Nageswaran on Friday exuded confidence that the Indian economy will grow at 6

India to grow at 6.3-6.8 pc in FY?26, GST rate cuts to boost consumption, taper tariff shocks: CEA
GST
Dated:- 29-8-2025
PTI
New Delhi, Aug 29 (PTI) Chief Economic Advisor V Anantha Nageswaran on Friday exuded confidence that the Indian economy will grow at 6.3-6.8 per cent in the current fiscal as proposed GST rate cut is expected to aid consumption, even though steep US tariffs pose a downside risk.
Briefing reporters after the April-June GDP growth data was released by the statistics ministry, Nageswaran also said that the 25 per cent penal tariff imposed by the US on Indian goods will be “short-lived” as both the countries are currently negotiating on it.
“There is some uncertainty with respect to the additional tariff w

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jections if the (penal) tariffs remains for a longer period, but we are hopeful it would be resolved sooner,” he said.
The US has imposed a 50 per cent tariff on Indian goods, which includes a 25 per cent penalty for Russian oil imports, which has come into effect from August 27.
Nageswaran said the impact of penal tariffs in economic activity would be concentrated in second quarter (July-September).
“The removal of the uncertainty may unleash higher growth in the third and fourth quarters compensating the impact of second quarter,” Nageswaran said, adding that it is difficult to estimate the downside impact of high tariffs on growth as the situation is uncertain.
Various private sector estimates put the downside risks to GDP growth

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Karnataka CM demands revenue safeguards ahead of GST rate rationalisation talks

Karnataka CM demands revenue safeguards ahead of GST rate rationalisation talksGSTDated:- 29-8-2025PTIBengaluru, Aug 29 (PTI) Karnataka Chief Minister Siddaramaiah on Friday called for the Centre’s proposed GST rate rationalisation to be backed by a robus

Karnataka CM demands revenue safeguards ahead of GST rate rationalisation talks
GST
Dated:- 29-8-2025
PTI
Bengaluru, Aug 29 (PTI) Karnataka Chief Minister Siddaramaiah on Friday called for the Centre's proposed GST rate rationalisation to be backed by a robust revenue protection framework for states, ahead of the GST Council meeting next week.
He said the rationalisation process should not compromise state finances and sought the inclusion of three safeguards in the reform.
“The rationalisation of GST rates must be supported by a robust revenue protection framework for states, a supplementary levy on sin and luxury goods, and a guaranteed compensation mechanism for at least five years,” Siddaramaiah said in a statement here.

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the common man.
Siddaramaiah welcomed the consensus draft prepared by opposition-ruled states at the meeting, which will be placed before the GST Council, chaired by the Union Finance Minister and comprising all state ministers, at its September 3-4 session.
“This draft seeks to ensure reforms that are both fair and sustainable,” he said.
“We are for rationalisation of GST rates, easing compliance and reducing the burden on the people. But such reforms must be accompanied by a robust framework that protects the fiscal interests of the states. Without this, states will find it difficult to sustain welfare and development programmes, leading to a serious weakening of their financial autonomy,” Siddaramaiah said.
He noted that opposition

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ively, and engage with states in good faith in the true spirit of cooperative federalism.” Siddaramaiah claimed that Karnataka has already faced discrimination in fund devolution from the union government, “suffering an annual shortfall of nearly Rs 25,000 crore.” “Any further erosion of GST revenues will only compound this injustice and directly affect our capacity to deliver on the promises of development and welfare,” he claimed.
The Centre has proposed a two-tier GST structure of 5 and 18 per cent, replacing the current four-slab system of 5, 12, 18, and 28 per cent, plus a compensation cess.
Under the proposal, goods and services would be classified as merit and standard and taxed at 5 and 18 per cent.
A 40 per cent slab has been

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GST reform: Punjab FM seeks robust compensation mechanism to ensure fiscal stability of states

GST reform: Punjab FM seeks robust compensation mechanism to ensure fiscal stability of statesGSTDated:- 29-8-2025PTINew Delhi, Aug 29 (PTI) Punjab Finance Minister Harpal Singh Cheema on Friday said the Centre under the current proposal to rationalize Go

GST reform: Punjab FM seeks robust compensation mechanism to ensure fiscal stability of states
GST
Dated:- 29-8-2025
PTI
New Delhi, Aug 29 (PTI) Punjab Finance Minister Harpal Singh Cheema on Friday said the Centre under the current proposal to rationalize Goods and Services Tax (GST) rates should provide adequate compensation to states to prevent financial instability, asserting that such a balanced approach will protect the fiscal autonomy of states while advancing the objectives of GST reform in the true spirit of cooperative federalism.
He emphasised that the benefits of this measure should reach the poor people of the country who are facing inflation, rather than corporate houses.
He stressed that if the current proposa

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central to this design, but after its implementation, states have to face significant revenue losses.
Cheema, according to a statement issued by the state government, said that after the implementation of this, Punjab has to bear a financial loss of around Rs 1.11 lakh crore. Though the state received Rs 60,000 crore when the compensation cess was active, till date no step has been taken on part of the central government to compensate the remaining loss amounting to Rs 50,000 crore to Punjab.
Interacting with the media, he said that all these states have strongly voiced for a mechanism of additional levy on sin and luxury goods to be imposed in order to maintain the current effective level of taxation. These proceeds must be fully trans

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HIGHLIGHTS

HIGHLIGHTSGSTDated:- 29-8-2025PTINew Delhi, Aug 29 (PTI) Following are the top stories at 5.30 pm: TOP STORIES DEL43 BIZ-GDP
India’s GDP grows 7.8 pc in Q1: Govt data New Delhi: Indian economy grew by 7.8 per cent in April-June the highest

HIGHLIGHTS
GST
Dated:- 29-8-2025
PTI
New Delhi, Aug 29 (PTI) Following are the top stories at 5.30 pm: TOP STORIES DEL43 BIZ-GDP
India's GDP grows 7.8 pc in Q1: Govt data New Delhi: Indian economy grew by 7.8 per cent in April-June the highest in five quarters before the disruptive US tariffs were imposed.
FGN48 PM-JAPAN-INTERVIEW
Important for India, China to work together to bring stability to world economic order: PM Modi Tokyo: Prime Minister Narendra Modi on Friday said it is important for India and China to work together to bring stability to the world economic order as he asserted that New Delhi is ready to advance bilateral ties from a strategic and long-term perspective based on mutual respect

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B Sudershan Reddy, who had come under attack from Home Minister Amit Shah.
DEL22 UKD-3RDLD-CLOUDBURST
Cloudburst, landslides in Uttarakhand; five killed, many families buried under rubble Dehradun: Five people were killed and three went missing as heavy rains and cloudbursts wreaked havoc in various districts of Uttarakhand early Friday, triggering landslides that left about 30-40 families buried under mounds of rubble and damaged houses, officials said.
DEL44 BIRLA-CONFERENCE-PANELS
Declining discussion in legislatures a concern, par panels working above politics: Birla Bhubaneswar: Lok Sabha Speaker Om Birla said on Friday that the role of parliamentary committees has been growing as they work above the divide of parti

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rail of fictitious accounting entries in three years during his posting at the Dehradun airport, officials said.
LEGAL LGD19 SC-BENGALI MIGRANT WORKERS
Does Centre want border wall like US to prevent entry of illegal immigrants? SC asks New Delhi: The Supreme Court on Friday asked the Centre whether it wanted to build a border wall like in the US to prevent illegal immigrants from entering the country.
BUSINESS DEL51 BIZ-FOREX
India's forex reserves drop USD 4.38 bn to USD 690.72 bn Mumbai: India's forex reserves dropped USD 4.386 billion to USD 690.72 billion for the week ended August 22, the Reserve Bank of India (RBI) said on Friday.
DEL45 BIZ-GST-LD STATES
GST Reform: Opposition states demand 5-yr com

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Kerala GST dept raids jewellery shops, unearth Rs 100 cr sales suppression

Kerala GST dept raids jewellery shops, unearth Rs 100 cr sales suppressionGSTDated:- 29-8-2025PTIThiruvananthapuram, Aug 29 (PTI) The state GST department unearthed sales suppression worth over Rs 100 crore in a major operation codenamed ‘Arkenstone’ afte

Kerala GST dept raids jewellery shops, unearth Rs 100 cr sales suppression
GST
Dated:- 29-8-2025
PTI
Thiruvananthapuram, Aug 29 (PTI) The state GST department unearthed sales suppression worth over Rs 100 crore in a major operation codenamed 'Arkenstone' after raids in jewellery shops in Thrissur, officials said on Friday.
The raids, which began at 4.30 pm on August 26 and concluded the next day, were carried out by around 200 officers from the State GST Intelligence and Enforcement

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GST Reform: Opposition states demand 5-yr compensation for likely revenue loss

GST Reform: Opposition states demand 5-yr compensation for likely revenue lossGSTDated:- 29-8-2025PTINew Delhi, Aug 29 (PTI) Opposition-ruled states on Friday demanded that all states be compensated for 5 years for the likely Rs 2 lakh crore a year revenu

GST Reform: Opposition states demand 5-yr compensation for likely revenue loss
GST
Dated:- 29-8-2025
PTI
New Delhi, Aug 29 (PTI) Opposition-ruled states on Friday demanded that all states be compensated for 5 years for the likely Rs 2 lakh crore a year revenue loss due to the Centre's GST reform proposal.
Ministers from eight opposition-ruled states Himachal Pradesh, Jharkhand, Karnataka, Kerala, Punjab, Tamil Nadu, Telangana and West Bengal also sought a mechanism to guard against profiteering by businesses post tax rate cut to ensure the benefits reach the common man.
The states suggested that an additional duty be levied on sin and luxury goods in addition to the proposed 40 per cent rate to maintain the current tax inc

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Briefing reporters after a meeting of the eight states, Karnataka Finance Minister Krishna Byre Gowda said each state is expected to lose 15-20 per cent from its current Goods and Services Tax (GST) revenue and debunked the claim that tax revenue buoyancy will increase after the rate cut.
“The 20 per cent GST revenue loss will seriously destabilise the fiscal structure of state governments across the country,” Byre Gowda said, adding that states should be compensated for 5 years which may be extended further till the revenues stabilise.
When GST was implemented, the revenue-neutral rate (RNR) was 14.4 per cent, but subsequent tax rate rationalisation has brought the net rate of taxation down to 11 per cent.
The current proposal by

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“If there is a serious loss to state government revenues, people will be impacted, development work will be impacted and insufficient revenue will hurt state autonomy as well,” Byre Gowda said.
With the proposed GST rate rationalisation, Telangana is estimated to lose Rs 7,000 crore annually, Telangana Deputy Chief Minister Bhatti Vikramarka told reporters and asked the Centre to properly compensate states for the losses expected from the new tax measure.
Himachal Pradesh Technical Education Minister Rajesh Dharmani said, “We agree to the proposal of rate rationalisation, but we should be compensated as well.” There should be a separate slab for red-category manufacturing companies which adversely impact the environment, Dharmani added

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