Karnataka GST Rate Cut: Wary of Rs 15,000 Crore Revenue Loss, Karnataka to OPPOSE Center’s GST Rate Cuts; seeks compensation | Bengaluru News – Times of India

Bengaluru: The State Govt is Wary of the Center’s decision to resuffle and reduce good and services tax (GST) Tax (GST) Rate Slabs, Suggesting that it could result in a massive revenue short State. In his independence day speech, Prime Minister Narendra Modi Announced “Next Generation Tax Reforms”, Following which the group of ministers (gom) on gst rate Rate Rate Rate Rate Rate Rate Rate Rate and ACEPTEDTED The Center Compress the existing slabs of 5%, 12%, 18%, 28%into a simpler two-also system of 5%and 18%. The GST council is stated to meet on Sept 3 and 4 to Finalise the decision. If the council ratifies the proposal, prices of many consumer durables and electronics, currently taxed at eite 12% or 28%, are expected to declale. Computer Monitors, Carbonated Beverages, Fruit Juices, and Construction Materials Like Cement Besides Other Goods – All Currently Taxed at 28% – May Be May Be Moved to the 18% Slab. Likewise, readymade garments priced about Rs 1,000, currently under the 12% bracket, may draw a lower 5% GST. “Rationalization of GST Slabs Makes Economic Sense, as It Ensures More Money in the Hands of Consures, Benefits Trade and Increases Revenue to the Exchequer,” Said Bt Manohar, A Member of KarnaTaka Gst Advisory Committee. But While Consures and Trade Groups are optimistic, the state has voiced serial Concerns over the fiscal impact. Chief Minister Siddaramaiah’s Budget has set an ambleous GST Revenue Target of Rs 1.2 Lakh Crore for the Current Financial Year. The State’s Commercial Taxes Department Projects a Potential Revenue Loss of More Than Rs 15,000 Crore If the Rate Cuts are implemented. Revenue Minister Krishna byre Gowda, Karnataka’s representative at the GST Council, Said States Had Expressed Concerns at the Gom Meeting, Estimating Cumulative Losseses Ranging from RS 85,000 CRS 2 Crore. “Karnataka supports rate rationalization, but this exercise will leave a permanent hole in the reverence of all state Govt,” Byre GoDa Said. “GST is a federal arrangement. Byre Gowda Said States are Demanding Revenue Protection Until the tax inflow stabilies. He will also also oppose the rate cut proposal at the gst council meeting. “If karnataka’s revivals take a big hit, should we be dependent on the central govt to run our govt?” He asked. “Karnataka has alredy suffred gross injustice from the central govt. While we support rate rationalization, we have also also demanded protection for loss of revenue.” Basavaraj Rayreddi, The CM’s Economic Adviser, Echoed the Sentiment Saying The Center Must Provide Adequate Compensation to States, Like the Compensation Formula Adopted from 2017 to 20222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222. To to to to to to’s’s’s’s’s’s’sne’s’t at’sance –st aor to. ” “Considering the immediane impact, the center must either compensate states, or it should change the share to 75:25 [larger share for states] Between States and Center from the present 50:50, “Said Rayredi. Rayareddi said siddaramaiah is expected to only convene a meeting of finance ministers from all states in new Delhi to forge a national consensus on the issue.