Bengaluru, Aug 29 Commenting on the deliberation by Opposition-ruled states in Delhi regarding Union government's announcement regarding rationalisation of GST rates, Karnataka Chief Minister Siddaramaiah said on Friday that "We (Opposition-ruled states) are for rationalisation of GST rates, ease compliance and reducing burden on the people".
He made the statement to the media.
Chief Minister Siddaramaiah said, "Today, representatives from eight Opposition-ruled states met in Delhi to deliberate upon the Union government's announcement regarding rationalisation of GST rates. Karnataka was represented at the meeting by our Revenue Minister, Krishna
"We are for rationalisation of GST rates, ease compliance and reducing the burden on the people. But such reforms must be accompanied by a robust framework that protects the fiscal interests of the states," the Chief Minister added.
"Without this, states will find it difficult to sustain welfare and development programmes, and a serious weakening of their financial autonomy," he said.
Opposition leaders had consistently objected to the faulty implementation of GST in 2017 and have always demanded rationalisation of GST rates, the Chief Minister added.
"Even within the GST Council, states have repeatedly pressed for rationalisation, always with the caveat that the revenue interests of states must be safeguarded. Karnataka, too, has raised this issue in multiple Council meetings," CM Siddaramaiah opined.
"GST is a joint responsibility. It is founded on equal responsibility and respect for states and the Centre. For the sake of endurance and stability of GST, the Centre and states must work together," he said.
This requires states to be taken into confidence and their concerns addressed adequately, he underlined.
"Adding to this, Karnataka has already been subjected to discrimination in the devolution of funds from the Union government, suffering an annual shortfall of nearly Rs 25,000 crore. Any further erosion of GST revenues will only compound this injustice and directly affect our capacity to deliver on the promises of development and welfare," CM Siddaramaiah said.
"We expect Central government to respond constructively and positively, engage with states in good faith in the true spirit of cooperative federalism," he added.
"Therefore, I strongly urge that the rationalisation of GST rates must be supported by: a robust revenue protection framework for states, a supplementary levy on sin and luxury goods, and a guaranteed compensation mechanism for at least five years," the Chief Minister said.
"I welcome the consensus draft prepared by the Opposition-ruled states at today's meeting, which will be placed before the GST Council. This draft seeks to ensure reforms that are both fair and sustainable," CM Siddaramaiah added.
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