Telangana CM urges Centre to compensate states for 5 more years post GST rationalisation

With the Centre approving a complete overhaul of the Goods and Services Tax (GST) regime, Telangana Chief Minister A Revanth Reddy on Friday demanded compensation for all the states for five more years, citing that the reduction in the tax rates would have an adverse effect on their revenue.

The Congress leader also urged the government to hold a dialogue with those Maoists who want to join the mainstream.

Taking a swipe at the BJP-led Centre, he said when it can hold talks with terrorists and Pakistani agencies, then why not with the Maoists who are Indians.


"Law and order has to be protected but the government has to show mercy.... Killing individuals is not a solution," he said.

Reddy also termed K Kavitha's resignation from the Bharat Rashtra Samithi (BRS) as a "family matter" and claimed that Telangana has socially boycotted the family of K Chandrashekar Rao (KCR).

On the issue of Telangana Assembly bills related to reservations pending with President Droupadi Murmu, the chief minister said his government will wait for the Supreme Court to pronounce its verdict in the matter.

The apex court reserved its verdict earlier this month after hearing arguments for 10 days on the presidential reference, which had raised a question that whether a constitutional court can impose timelines for governors and the president to give assent to bills passed by state legislatures.

Asked about the GST Council approving a complete overhaul of the tax regime, Reddy demanded that all states be given compensation for five years, citing that the reduction in the tax rates would have an adverse effect on their revenue.

He said Telangana would lose about Rs 7,000 crore per annum due to the rationalisation of the GST and must be compensated for it.