Opposition States Seek GST Compensation Ahead of Crucial Council Meeting

Finance ministers from eight opposition-ruled states convened on Wednesday to strategize ahead of a pivotal GST Council meeting. The states, concerned about potential revenue loss stemming from proposed changes to the Goods and Services Tax (GST) rate structure, aim to secure compensation from the central government.

During a previous meeting, officials from Himachal Pradesh, Jharkhand, Karnataka, Kerala, Punjab, Tamil Nadu, Telangana, and West Bengal discussed mechanisms to protect their revenue. The debate focuses on the proposed removal of the 12 and 28 percent GST slabs, which could adversely impact state economies.

Radha Krishna Kishore, Finance Minister of Jharkhand, highlighted that his state faces a potential Rs 2,000 crore loss if the reforms proceed without compensation. Despite differing views on the impact of rate adjustments, the central government's proposal aims to stimulate consumption by lowering prices across a range of consumer goods.

(With inputs from agencies.)