Bengaluru: Karnataka Revenue Minister Krishna Byre Gowda has raised alarm over the Central Government’s proposed GST rate simplification, warning it could cost the state an additional ₹15,000 crore every year.
Addressing the media, the minister said Karnataka has already been losing an average of ₹70,000 crore annually since GST was introduced. If the new proposal is implemented, the total annual loss could soar to ₹85,000 crore.
He criticised the Centre for failing to provide any state-wise loss estimates and said the promise that GST would boost economic activity has not materialised. “Year after year, state revenues have declined,” he noted, adding that under the earlier VAT system, the contribution to GDP was 6.1%, compared to just 5.8% under GST.
Byre Gowda stressed that the figures clearly indicate revenue losses for both states and the Union Government, calling for urgent reconsideration of the proposal to protect state finances.
