New Delhi: Kerala Finance Minister K N Balagopal has warned that the state could face an annual revenue loss of ₹8,000–10,000 crore following the implementation of the revised GST rate rationalisation.
Revenue Concerns
Balagopal met the 16th Finance Commission in New Delhi and submitted a supplementary memorandum outlining Kerala’s concerns. He said the two-rate GST structure (5% and 18%), approved by the GST Council, would lower prices of many items but cause major revenue setbacks.
Of the total loss, Kerala estimates ₹6,300 crore will come from Goods tax revenue alone. The Finance Minister requested compensation support from the central government.
Lottery Prices Unaffected
Balagopal clarified that despite the GST on lotteries increasing from 28% to 40%, the price of lottery tickets in Kerala will not rise. He confirmed that the state government has no plans to pass on the tax burden to consumers.
Kerala’s Position
While Kerala supports GST rationalisation, Balagopal stressed that the reform should not disproportionately impact state finances. He urged the Finance Commission to consider Kerala’s memorandum and provide relief measures.