CM welcomes revamped GST rates, but says the benefits should reach common man

In a belated response to the revamped GST slabs, Chief Minister Siddaramaiah on Friday welcomed the Centre’s decision on rationalisation of GST rates, but cautioned that the reduction in rates must lower prices for people and not increase profit margins for big companies.

“If the benefits fail to reach the common man, the blame will rest squarely on the Union government,” he said in a press release.

Mr. Siddaramaiah said that the reduction of GST rates by the Narendra Modi-led government was an important step in alleviating both the monetary and compliance burdens on people and businesses.

Giving credit to the party leader Rahul Gandhi, he said, “This decision is not new wisdom but a long-delayed acceptance of what Rahul Gandhi, Opposition leaders, and opposition-ruled States have demanded since 2016-2017, when the Mr. Modi-led government hurriedly rolled out a faulty GST.”

Voting powers

He further pointed out that the GST system gives the Centre one-third of the total voting power, while all States together share the remaining two-thirds.

“For any reform, a three-fourths majority is needed. This means that even if all States agree, a stubborn Central government can block reforms. That is exactly what Mr. Modi’s government did. Today’s course correction proves that our stand was right all along. The people of India could have been spared years of hardship had the Union government listened earlier,” the Chief Minister said.

‘Devolve cess’

Mr. Siddaramaiah reiterated his Cabinet colleague Krishna Byre Gowda’s statement that Karnataka alone may lose ₹15,000–20,000 crore in revenue due to this decision. The Chief Minister, who also holds the finance portfolio, urged the Centre to devolve the GST compensation cess, still being collected on certain sin goods, back to the States.