Tax - Kerala BJP chief dismisses Left govt's GST revenue loss claim

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Kerala BJP chief dismisses Left govt's GST revenue loss claim

A state opposition leader publicly disputed the state government's assertion that recent central GST rate cuts will cause an annual revenue shortfall, arguing lower rates will raise purchasing power and overall tax receipts; the state finance ministry had warned of an Rs 8,000-10,000 crore gap and sought compensation. The dispute raises legal and fiscal issues under India's GST framework, including entitlement to compensation mechanisms, responsibilities of the GST Council, and principles of fiscal federalism governing tax rate changes and intergovernmental transfers. Resolution likely requires technical revenue impact assessment and political negotiation within statutory GST institutions.


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Source: https://www.taxtmi.com/news?id=55423 Sep 11, 2025, 09:37 PM