GST: Siddaramaiah hails consensus reached by eight Opposition-ruled states

Chief Minister Siddaramaiah on Friday hailed the consensus on the GST compensation reached by eight Opposition ruled states at a meeting in Delhi, echoing similar sentiments expressed by his southern counterparts MK Stalin of Tamil Nadu and Pinarayi Vijayan of Kerala.

The states will place the consensus in the form of a draft in the GST Council meeting next week.

“This draft seeks to ensure reforms that are both fair and sustainable,” Siddaramaiah said in a post on X. Both Siddaramaiah and Stalin have sought a guaranteed compensation mechanism to cover the revenue shortfall after the GST rate changes come into force.


Both Siddaramaiah and Stalin welcomed the reforms that aim to reduce the burden on the people. But a robust framework that protects the fiscal interests of the states must accompany such reforms, Siddaramaiah said. “Without this, states will find it difficult to sustain welfare and development programmes, and a serious weakening of their financial autonomy. He suggested that the Centre impose a supplementary levy on sin and luxury goods

Karnataka, the CM said, has already been subjected to discrimination in the devolution of funds from the Union Government, suffering an annual shortfall of nearly ?25,000 crore. “Any further erosion of GST revenues will only compound this injustice and directly affect our capacity to deliver on the promises of development and welfare.”

Kerala CM Pinarayi Vijayan has also urged the Centre to support the states staring at a drop in tax revenues on account of changes to GST rates.