Kerala strongly repeated its demand for the just closed meeting of the GST Council that the income of states would be protected on the basis of the structure of revised goods and services (GST), said the Minister of Finance KN KN Balagopal (September 4, 2025).
In an interview with the media after the 56th meeting of the GST Council in Nový Delhi, Mr. Balagopal said that Kerala himself is likely to face immersion of annual income in the melody of 8,000 crore per 10,000 crore for Revam. “This is an approximate value. Tax Rejig for cars, insurance, electronics and cement would overturn the revenues of Keraly by 2,500 GBP Crore for Kerala,” he said.
Center and states would notice a reduction in tax revenue, but the center has other sources of income, while states have only GST. Protected income should therefore be introduced at least for years, Mr. Balagopal said.
Registers protest
“The Center was not ready to discuss this matter. The GST Council also failed to pay serious attention. As regards the need for revenue protection, the Minister of Finance in Kerala stated that any decline in income would seriously affect Kerala because they spend the main part of their income for salaries and pensions and measures for social security.
Kerala also demanded that the ratio of income sharing between states and the center be revised to 60:40 in favor of the states.
Second, Kerala sought measures to ensure that the benefits of reducing rates really benefit ordinary people who are end consumers, Balagopal said. The department of the state department and consumers would carefully monitor the development to see if consumers actually benefit from the GST Council decisions, he said.
“Although the rationalization of the public rate is good for the public, there should be a guarantee that the end consumer will benefit. Some evaluations claim that rationalization would reduce the tax to £ 2 lakh crore melody. People should benefit from it,” he said.
Past experience has shown that companies would concern such measures by raising commodities. While cement prices should be reduced by 30 to 35 GBP due to revamps, cement companies are planning to increase prices, he stressed.
Lottery tax
Kerala also raised strong objections to the decision to increase the tax lottery tax to 40%, Balagopal said. The state’s requirement was that lottery tickets should be maintained at 28%. “We have pointed out that more than 2 lakh people depend on this sector,” he said.
Mr. Balagopal pointed out whether the tax regime would still be in force before GST (tax, VAT tax), the revenues of Keraly would affect 60 000 crore last year at 15% to 16%. Even with an annual increase of 12%, income would increase to 51,892 GBP in 2024-25. Instead, the state received only 32 773 crore under GST, he said.
Published – 4 September 2025 14:17
