BJP Hails GST Regime as ‘Historic’; Congress Questions Revenue Impact

quick Summary

• The BJP State unit has welcomed the revamped GST two-slab system as a “Deepavali gift” and called it “historic.”
• Congress leaders in Karnataka have expressed concerns over the revenue shortfall caused by the new GST structure.
• Revenue Minister Krishna Byre Gowda estimated karnataka faces an additional ₹15,000 crore annual loss under the new GST regime, compounding the current ₹70,000 crore annual loss.
• Congress criticized Delhi for hoarding ₹1.8 lakh crore in cess collected from States on platforms like X.
• IT/BT Minister Priyank Kharge commended rationalization of GST but demanded compensation for losses to States like Karnataka. He highlighted disproportionate tax collection between middle-class citizens and billionaires.
• Housing Minister Zameer ahmed Khan sought GST exemption for housing schemes meant for poor yet stated action was lacking on this appeal.
• BJP leaders dismissed Congress’s concerns, praised tax reductions as beneficial for farmers and middle-class Indians, and accused Karnataka’s Congress government of excessive taxation since coming to power.

Indian Opinion Analysis

The implementation of the revamped two-slab GST system has reignited debate over federal fiscal relations between State governments and Delhi. While hailed by BJP leaders as equitable reform benefiting ordinary citizens such as farmers and middle-income groups, opposition critiques underline persistent structural disparities in revenue distribution under GST. The concern voiced by Karnataka officials warrants attention as significant revenue shortfalls may undermine funding essential services like education or healthcare within its administrative purview.

This divergence also reflects larger questions about compensation mechanisms for financially strained States that increasingly feel sidelined on fiscal autonomy issues despite their integral role in national policymaking bodies such as the GST Council. It remains essential that discussions around taxation prioritize transparent accountability alongside meaningful provisions ensuring no undue burdens harm localized governance frameworks vital democratic constitutional intact-radio globally significant framework logic-neutral-rationale..

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