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News Report: GST Rate Cut Sparks Debate in Karnataka..

By Vinutha U
News Report: GST Rate Cut Sparks Debate in Karnataka..

However, Karnataka’s Revenue Minister Krishna Byre Gowda has accused the central government of causing financial losses to states due to this decision. The minister acknowledged Karnataka’s support for the GST rate cut but highlighted that it would lead to a revenue loss of approximately ₹1.5 lakh crore for states.

Bengaluru (Sep 22, 2025): Starting today, GST rates have been reduced across India, a move expected to benefit citizens. Prime Minister Narendra Modi, speaking on Sunday, stated that the GST reduction would positively impact the public. However, Karnataka’s Revenue Minister Krishna Byre Gowda has accused the central government of causing financial losses to states due to this decision. The minister acknowledged Karnataka’s support for the GST rate cut but highlighted that it would lead to a revenue loss of approximately ₹1.5 lakh crore for states.

He urged the central government to compensate for this loss, stating that without such measures, states would struggle to function effectively. “States need financial security to operate independently. Without compensation, this loss will create significant challenges,” Gowda said.He further alleged that Karnataka faces consistent injustice in financial matters, receiving only 14 paise for every ₹1 paid in taxes. The GST reduction is estimated to cause Karnataka an annual loss of ₹15,000 crore. Zeneme Traditional Brass 18 K Gold Plated Wedding Jewellery Bahubali Inspired Long Chain Jhumki Earrings for Women and Girl

The minister revealed that Karnataka had suggested using cess revenue to offset state losses, but the central government ignored this proposal and made a unilateral decision. This has reportedly resulted in a ₹60,000 crore gain for the central government, while states face severe financial setbacks.Gowda criticized the central government for encroaching on states’ rights, warning that such actions could hinder states’ ability to govern effectively. Mahesh Shetty Timarodi Skips First Notice... Belthangady Police Issue Second Notice

“If this continues, states will become overly dependent on the Centre, which contradicts the principles of federalism. Financial losses to states are detrimental to the country’s future, and the central government must address this,” he said. He emphasized that financial stability is crucial for states’ autonomy, without which independent governance would be impossible.