Jharkhand's GST Woes: Minister Calls for Compensation
Jharkhand's Finance Minister, Radhakrishna Kishore, warns that proposed GST reforms could lead to an annual revenue loss of Rs 2,000 crore for the state. He urged the central government to compensate for the loss, emphasizing the state's struggle due to its status as a manufacturing rather than a consumer state.
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Jharkhand Finance Minister Radhakrishna Kishore raised concerns on Wednesday that the proposed GST reforms could result in a significant annual revenue loss of Rs 2,000 crore for the state. He highlighted this issue during the 56th GST Council meeting in New Delhi.
Kishore emphasized that the reforms could notably impact Jharkhand's automobile, cement, and other manufacturing sectors. He pointed out that the state's per capita income stands at Rs 1.05 lakh annually, and due to weak consumer purchasing power, Jharkhand doesn't benefit as a consumer state under the GST system.
With an estimated loss amounting to Rs 16,408 crore from 2017 to 2024-25, and projections of around Rs 61,670 crore by 2029, Kishore insisted on the need for a robust revenue protection framework. He proposed additional duties on luxury items and called for a guaranteed compensation mechanism to ensure states retain their fiscal autonomy.
(With inputs from agencies.)
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