On September 25th, The Hindu Mind series will host an important session in New Delhi featuring Telangana Deputy Chief Minister Bhatti Vikramarka Mallu and Kerala Finance Minister K.N. Balagopal. They will engage in a candid and thought-provoking conversation on the Goods and Services Tax (GST) and its impact across the nation.
The Hindu Mind is a renowned platform for in-depth discussions with leading policymakers, exploring crucial political, economic, and social issues. This upcoming session will focus on the intricacies of GST, a topic both ministers have been actively involved with.
It’s worth noting that Mr. Mallu, who also oversees Telangana’s finance portfolio, and Mr. Balagopal were among eight State Finance Ministers who previously urged the GST Council to provide compensation for the potential revenue loss resulting from the Centre’s proposed GST rate cuts. Their suggestion was to implement an additional cess on items falling under the 40% slab. However, this proposal was not adopted by the GST Council, and no new cesses have been introduced.
This discussion comes shortly after the rollout of ‘GST 2.0’ on September 22nd. While the Centre projects a revenue impact of ₹48,000 crore due to these rate rationalizations, figures like West Bengal Chief Minister Mamata Banerjee anticipate a substantial blow of ₹20,000 crore for her state alone.
The Centre maintains that increased consumption driven by lower GST rates will counteract any revenue reduction. However, several opposition-ruled states remain unconvinced, a perspective that both ministers are expected to highlight during their session.
Furthermore, the discussion will address how these GST developments unfold amidst a challenging economic environment, where other vital growth drivers, such as exports and private investment, are encountering significant obstacles.