GST Rate Rationalisation: Telangana Faces Revenue Woes

Telangana is bracing for significant financial losses estimated at nearly Rs 7,000 crore annually due to the proposed GST rate rationalisation. Deputy Chief Minister Bhatti Vikramarka has urged the Central government to adequately compensate the states for these anticipated losses.

Speaking to the media in Delhi, Vikramarka revealed that Telangana's accumulated losses since GST's inception are nearing Rs 80,000 crore. He stressed that such financial hits could severely affect the state's welfare and developmental programmes and requested that revenue from taxes on sin and luxury goods be used for compensation.

The GST rate rationalisation has prompted eight states, including Telangana, to collaborate and present their proposal to the GST Council. With initial promises of a 14% growth in tax revenues unmet, Vikramarka highlighted the urgent need for compensation as states continue to face financial instability.

(With inputs from agencies.)