CM Siddaramaiah Welcomes GST Rate Rationalisation, Slams Modi Government for Delayed Reform and Revenue Loss to States
Bengaluru: Karnataka Chief Minister Siddaramaiah has welcomed the GST Council’s decision to rationalise GST rates, calling it an important step to reduce the monetary and compliance burden on people and businesses. At the same time, he criticised the Modi Government for resisting reform for eight years, despite repeated demands from the Opposition.
In a press release, Siddaramaiah said this was not a new idea but “a long-delayed acceptance” of what Rahul Gandhi, Opposition leaders, and Opposition-ruled states had sought since 2016–2017, when the Centre “hurriedly rolled out a faulty GST system.”
“Gabbar Singh Tax” Criticism Reiterated
“From the beginning, we warned that this ‘Gabbar Singh Tax’ would crush small businesses, increase compliance costs, and burden ordinary families. Sadly, Prime Minister Narendra Modi ignored these warnings for eight long years,” the CM said.
He explained that in the GST framework, the Union Government holds one-third of the voting power, while all states together share two-thirds. Since reforms require a three-fourths majority, “even if all states agree, a stubborn Central Government can block reforms. That is exactly what Mr. Modi’s government did. Today’s course correction proves that our stand was right all along,” Siddaramaiah remarked.
Revenue Concerns for Karnataka
Siddaramaiah warned that Karnataka alone could lose ₹15,000–20,000 crore in revenue due to the rate rationalisation. “Yet, putting the welfare of our people above everything else, we welcome this decision,” he said, while strongly urging the Centre to devolve the GST compensation cess still being collected on sin goods back to the states.
Call for Benefits to Reach Citizens
The CM emphasised that it is the responsibility of the Union Government and the Central Board of Indirect Taxes and Customs (CBIC) to ensure that the benefits of GST rationalisation reach the consumer. “The reduction in rates must lower prices for the people, not increase profit margins for big corporates,” he warned.
Karnataka’s Commitment
Highlighting Karnataka’s vision, Siddaramaiah said, “We remain committed to building an economy that increases purchasing power, widens the tax base, and ensures prosperity for all. For us, governance is not about optics, it is about empowering every citizen of Karnataka and India.”
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