By Admin 
GST 2.0: The GST Council will meet on 3-4 September, in which the government’s proposals regarding GST reforms will be decided. With this, the people of the country have high expectations. However, there are 8 such states of the opposition in the country, which can keep one of their demands in it.
In fact, these eight states ruled by the opposition parties say that the government’s proposal to restructure the slabs in Goods and Services Tax (GST) will cause a loss of revenue from about 1.5 lakh crore to Rs 2 lakh crore annually to all states. In such a situation, the Center compensation for five years while compensating this loss.
These 8 states say this
Talking to the media on Friday, ministers from Karnataka, Himachal Pradesh, Jharkhand, Kerala, Punjab, Tamil Nadu and Telangana as well as a representative of the West Bengal government have demanded to create a mechanism to avoid profiteering after tax cuts, which can make sure to benefit the common man.
The states have suggested that in addition to 40 percent of luxury and Sin Goods, additional fees should be imposed on luxury and sin goods to maintain revenue from the existing tax slab. A part of the income received from this should be distributed among the states so that they can compensate for the revenue loss. In the next meeting of GST Council, all these states have decided to present their proposal.
Fiscal structure instability due to loss in revenue
The Center has not estimated the revenue loss from rationalization of rates. However, Karnataka Finance Minister Krishna Byre Gowda said that each state is expected to suffer a loss of up to 15-20 percent in its current GST revenue. He also rejected the claim that tax revenue would rise after cuts in rates. Gowda said, “The lack of 20 percent in GST Revenue will severely destabilize the fiscal structure of the state governments across the country.” He further said that states should be compensated for 5 years, which can be carried forward till the revenue is stable.
Punjab Finance Minister Harpal Singh Cheema also has the same demand that a mechanism should be created to find out profiteering so that the benefits of raising rates can reach the common man. These states are also in demand to fix the base year 2024-25 for calculating revenue protection.
Also read:
We will keep buying oil from Russia … ONGC’s big statement came between Trump’s tariff