By Admin 
GST 2.0: A decision will be taken in the meeting of the GST Council to be held on September 3-4 on the proposal of the Center’s GST reforms. Eight non-NDA states will also propose their proposal in this meeting. In fact, along with Karnataka, Himachal Pradesh, Jharkhand, Kerala, Punjab, Tamil Nadu and Telangana, West Bengal has criticized this scheme of the government.
He says that the government’s two rates (5 percent and 18 percent) GST slab structure can cause a loss ranging from 85,000 crore to 2 lakh crores in their revenue. These states feared that the two -slab easy GST structure will cause a loss of up to 20 percent in their revenue.
These states are in demand
There is a demand of these states that the government impose separate taxes on luxury things to compensate for this loss and give loans to all states. Along with this, these states are also demanding five years of revenue security guarantee considering 2024-25 as the base year. They will make proposals in the GST Council meeting. The State Bank of India has made an estimate that even after rationalizing the tax rates in GST reforms, states will make huge profits in the matter of revenue during this business year.
How will states benefit?
SBI said in a research note, this will be due to ways to distribute GST revenue. The first GST is divided equally between the center and the states and both get 50-50 percent of the collection. Secondly, under tax development i.e. tax transfer, 41 percent of the center goes back to the states.
Let us know that at present, 41 percent of the total tax collected by the Central Government in a financial year is divided into 14 installments among the states. SBI said that this means that out of every 100 rupees collected from GST, states get about 70.5 rupees or about 70 % of total revenue.
SBI said, our estimates for FY2 26 indicate that states are expected to get at least Rs 10 lakh crore as SGST and Rs 4.1 lakh crore through de Vills. This will provide them net profit. They will get this profit even when we do not include the increase in consumption due to rationalization of rates under GST reforms. (With 9.5 percent effective GST rate, it will get a revenue profit of Rs 52,000 crore. Both the Center and the states Rs 26,000-26,000 crore).
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These 8 states raised questions on the government’s proposal on GST reform, will keep these demands in the council meeting