Bengal and Kerala applauded the reduction in GST rates as a way to help households, but they cautioned that states will suffer catastrophic revenue losses and accused the Centre of transferring the expense while claiming credit.
Although she supported the decision for the sake of consumers, Bengal Chief Minister Mamata Banerjee stated on Monday that her state would lose Rs 20,000 crore as a result of the ruling.Following the opening of a Durga Puja in Kolkata, she questioned, "How will I run the state in such a condition?" "No compensation was given to states on account of lowered GST rates, the money was simply cut from our GST share."
"I'll put the facts in front of them and run advertisements to let them know how much we lost.
"The central government deserves no credit for this," she remarked. Banerjee highlighted out inconsistencies and recalled that she was the first to call for insurance to be free from GST: "Many little products and life-saving medications had GST.
Diamond was exempt from GST, while Cumin was. Banerjee asked if Delhi will reimburse the money that had been withheld for the Sarva Shiksha Abhiyan, roads, Jal Swapno, Awas Yojana, and 100 days of work.
Abhishek Banerjee, national general secretary of the Trinamool, intensified the assault.
"PM Modi said 'GST Bachat Utsav' yesterday. He enquired, "Has it been 'GST Loot Utsav' since 2017?"
KN Balagopal, the finance minister for Kerala, issued a warning about a "substantial fall" in revenue.
He calculated that Kerala may lose between Rs 50,000 crore and Rs 2 lakh crore, which would have an immediate impact on salaries, social security pensions, and development initiatives.
"States have no other way to generate this kind of money. The impact will be severe if this loss materialises, he warned, blaming Delhi of pursuing reforms without conducting the necessary research.
The GST accounts for 41% of the state's total revenue. Companies may not pass on the benefit, Balagopal said. "Even Union ministers admitted this concern," he stated.
