AP & Telangana State Head – Anandam Dundi :
Several states, including West Bengal, Telangana, and Punjab, have asked the central governmentto provide funds to offset the losses in revenue because of GST rationalisation. West Bengal Chief Minister Mamata Banerjee said that the NDA government didn’t spend a single penny on bringing about the reforms. She said state governmentsfunded the tax relief.
Addressing an event in Kolkata, Mamata Banerjee said the state would incur a loss of Rs 20,000 crore due to the GST reforms.
“The central government has not spent a single penny on this relief; it has all come from the coffers of state governments. They take the credit, but we have borne the cost…Will they return our money? Funds for 100 days’ work, for Awas Yojana, for roads, for Jal Swapno, for Sarva Shiksha Abhiyan: everything has been stalled. And now, again, a loss of Rs 20,000 crore has been inflicted. How will I run the state in such conditions?” she said.
What Telangana and Kerala said
The Centre has eliminated the Goods and Services Tax’s12 per cent and 28 per cent slabs. The items in these slabs are placed in the 5 per cent and 18 per cent slabs. A separate 40 per cent slab has been retained for luxury and sin goods.
Telangana Chief Minister A Revanth Reddy said on Monday that the state stands to lose Rs 7,000 crore due to GST rationalisation. He demanded that the Centre support states facing losses due to the GST reforms.
Andhra Pradesh Chief Minister N Chandrababu Naidu supported GST 2.0. However, his state will lose an estimated Rs 8,000 crore in revenue.
Kerala Finance Minister KN Balagopal claimed Kerala may lose between Rs 50,000 crore and Rs 2 lakh crore. He said this loss of revenue will impact the state’s social programmes.
Maharashtra has estimated that it will incur a revenue loss between Rs 10000 crore and Rs 12000 crore due to the GST reforms.
Chief Minister Devendra Fadnavis, however, lauded the GST reforms.
AAP-ruled Punjab is bracing for a 20 per cent shortfall in GST collections due to the rate rationalisation.
Finance Minister Nirmala Sitharaman has said that the reforms will leave Rs 2 lakh crore discretionaryincome in the hands of the people of the country.
The Central government expects that new income tax slabs coupled with GST reforms will provide a boost to the Indian economy, as consumers will likely increase domestic spending.