Several states voiced severe worries about the possible loss of revenue they could suffer from the planned GST rate decreases on the first day of the highly anticipated GST Council meeting. Sources who talked to NDTV Profit say that states are afraid that the planned changes to GST slabs will hurt their finances.
Karnataka, Punjab, West Bengal, Telangana, and Sikkim were among of the states that asked the central government for more information. Because of the proposed changes to the GST system, these states have all asked for stronger steps to protect their sources of income.
Even while the specifics of the GST change weren’t made public, the fear from these states shows that the talks about making the tax slabs more fair, which might mean cutting rates on some commodities, are running into problems. The GST Council meeting is a place for the federal and state governments to talk about and agree on tax policies. The issues that were brought up on Wednesday show how hard it is for states to find the right balance between making taxes easier to understand and keeping their finances stable. The results of these talks will be quite important for how the new tax system will look in the end.