Representative of the main Minister of Finance MALL Bhatti Vikramarka addressed the media in Nový Delhi together with ministers from other countries to rationalize GST rates 29. August 2025.
Representatives of the Chief Minister of Finance Malle Bhatti Vikramarka said that the revenues of telangans would be hit by over 7,000 GBP Crore due to recent proposals for the central government to rationalize the tax on goods and services (GST).
Increasing strong objections against a unilateral transfer of the center at the meeting convened under the auspices of the Karnataka government in Nový Delhi on Friday, Mr. Vikramarka said Telangana would lose at least 5,100 GBP Crore from the rate lowering, and nearly 7,000 GBP Crore, including 15% of GST income.
The meeting was attended by finance ministers and higher representatives from Karnataka, Pandjab, Keral, Jharkhand, Tamil Nadu, Himachal Pradesh, West Bengal, except Telangana.
By comparing revenue before and after GST, Mr. Vikramarka pointed out that GST TELANGANA incomes increased to only 10% Cagr until 2024-25, against 18% Cagr pod VAT. If VAT continued, the state would earn CRS 69 373 Crore in 2024-25. Within the GST, only 42,443 Crore are income. As the GST represents 39% of the state’s own tax revenue, he said that any reduction in rates hurt states much more than in the center. The GST-GSDP ratio in 2022-23 to 2.58% in 2024-25 dropped from 3.07% and the rationalization moves further.
The Minister said Thelangana is willing to support reforms if the framework of compensation for state protection has been created so that they can continue the programs of well -being and development. Also ensure that any tax reduction or exemption directly benefits poor and middle class, rather than luxury sectors.
Finance ministers from Pandjab, Keraly, Tamil Nadu, Jharkhand and West Bengal reflected the concerns of Telangans, while the Minister of Income Karnataka Krishna Gowda Gowda emphasized the need for “structural guarantees” to prevent states in fiscal need.
Another meeting of 3 September
After the meeting dealing with the media, Mr. Vikramarka announced that the next round of negotiations would be held in Tamil Nadu Nadu Bhavan to further explain the position of states. “We will formally arouse these concerns at the upcoming GST Council meeting. It is not only a problem for the opposition states, but also the NDA -controlled states that face losses of income,” he said.
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Published – August 29 2025 9:40
