Siddaramaiah welcomes GST reforms, seeks cess devolution

Bengaluru: Chief Minister Siddaramaiah on Friday welcomed the GST Council’s decision to rationalise GST rates while urging the Centre to devolve to states compensation cess that is being collected on some sin goods. “We welcome the GST Council’s decision to rationalise tax rates, an important step to reduce both the monetary and compliance burden on people and businesses,” Siddaramaiah said in a statement.

The state could lose up to Rs 15,000-20,000 crore due to this, he said. “Yet, keeping the welfare of our people above everything else, we welcome it.” 

Explaining the GST voting structure, Siddaramaiah noted that the Union government holds one-third of the total voting power while all states together share the remaining two-thirds, meaning a three-fourths majority is required for any reform.

“This means that even if all states agree, a stubborn central government can block reforms. That is exactly what 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,” he said, adding that Congress leader Rahul Gandhi and opposition parties were demanding reforms since the “hurried rollout of GST. 

Siddaramaiah said that the reduction in rates must lower prices for consumers, not increase profit margins for large corporates. “If the benefits fail to reach the common man, the blame will rest squarely on the Union government,” he said.