Welcoming the development of GST reforms by the Centre, Karnataka Chief Minister Siddaramaiah, who also holds the Finance portfolio stated: “We welcome the decision of the GST Council to rationalise GST rates, an important step to reduce both the monetary and compliance burden on people and businesses.”
In his statement released on Friday, CM Siddaramaiah emphasised: “This decision is not new wisdom but a long-delayed acceptance of what Rahul Gandhi, Opposition leaders, and opposition-ruled states have demanded since 2016-2017, when Prime Minister Narendra Modi government hurriedly rolled out a faulty GST.”
“From the very beginning, we had warned that this ‘Gabbar Singh Tax’ would crush small businesses, increase compliance costs, and burden ordinary families. Sadly, Prime Minister Narendra Modi chose to ignore these warnings for eight long years,” he criticised.
He pointed out: “To explain clearly – the GST system gives the Union government one-third of the total voting power, while all states together share the remaining two-thirds. For any reform, a three-fourths majority is needed. This means that 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. The people of India could have been spared years of hardship had the Union government listened earlier.”
“Now, the responsibility is on the Union Government and the Central Board of Indirect Taxes and Customs (CBIC) to ensure that the benefits of GST rationalisation actually reach the consumer. The reduction in rates must lower prices for the people, not increase profit margins for big corporates. If the benefits fail to reach the common man, the blame will rest squarely on the Union Government,” CM Siddaramaiah stated.
“Karnataka alone may lose Rs 15,000–20,000 crore in revenue due to this decision. Yet, keeping the welfare of our people above everything else, we welcome it. But we also strongly urge the Union Government to devolve the GST compensation cess, still being collected on certain sin goods (those specific products that are harmful to society or individual health), back to the states,” he appealed.
“As a state, we remain committed to building an economy that increases people’s 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,” he concluded.
Meanwhile, Karnataka Heavy and Medium Industries Minister M.B. Patil on Friday criticised Prime Minister Narendra Modi, stating that Congress leader Rahul Gandhi had been pointing out flaws in the implementation of the GST system for the past nine years.
However, the Prime Minister paid no attention to it all these years and has now corrected it. As a result, people of the country had to suffer for so long, he said.
Responding to questions from reporters at his residence in Bengaluru, the minister said, “The newly implemented two-tier GST policy is welcome. But the suffering faced by the people for years is due to the stubborn approach of Prime Minister Narendra Modi.”
