Opposition states demand compensation for revenue loss due to Centre's GST reform proposal
GST
Dated:- 29-8-2025
PTI
New Delhi, Aug 29 (PTI) Opposition-ruled states on Friday said the Centre's proposal for GST rate rejig could result in a revenue loss of about Rs 1.5 crore to Rs 2 lakh crore and demanded compensation for the losses incurred by them.
Finance ministers from eight states Himachal Pradesh, Jharkhand, Karnataka, Kerala, Punjab, Tamil Nadu, Telangana and West Bengal decided to present their proposal to the GST Council at the next meeting on September 3 and 4.
Their proposal for balancing rate rationalisation and revenue neutrality suggests levying an additional duty on sin and luxury goods in addition to the pro
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of taxation decreased to 11 per cent.
The current proposal by the Centre to reduce GST rates and prune slabs will bring down the net rate of taxation to 10 per cent.
“States' revenue interest should be protected. 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.
The Centre has proposed that the GST be made a 2-tier tax structure of 5 and 18 per cent, as against the current 4-slab structure of 5, 12, 18 and 28 per cent, plus a compensation Cess.
As per the Centre's proposal, goods and services will 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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