Karnataka welcomes GST reform: CM Siddaramaiah calls for fair benefits and urges action
Bengaluru, September 5 — Karnataka Chief Minister Siddaramaiah expressed his support for the recent GST rate cuts announced by the Central Government. He said, “We welcome the decision of the GST Council to rationalise GST rates. This is an important step to reduce both the financial burden and compliance headaches for people and small businesses.”
In his statement, CM Siddaramaiah highlighted that this move is not entirely new. “It’s a long-overdue acknowledgment of what opposition leaders like Rahul Gandhi and other states had been demanding since 2016-2017,” he said. The Prime Minister’s government had earlier introduced GST quickly, but many believed it was flawed from the start.
He criticised the previous GST implementation, calling it the “Gabbar Singh Tax,” claiming it hurt small businesses, raised costs, and burdened ordinary families. “Prime Minister Modi and his government ignored these warnings for eight years,” Siddaramaiah added.
The Chief Minister explained the role of the GST system, saying that the central government holds one-third of voting power on tax reforms, while states share two-thirds. For changes to happen, a three-fourths majority is needed. Since the central government often blocks reforms, Siddaramaiah believes today’s change shows their earlier stand was right. “Had the Union government listened earlier, people could have avoided many hardships,” he said.
He stressed that now the responsibility lies with the Union Government and the Central Board of Indirect Taxes and Customs (CBIC) to ensure the benefits of GST rate reductions reach consumers. “Lower rates should lead to cheaper prices for the people, not just bigger profits for corporations. If common citizens don’t benefit, the blame will fall on the Union Government,” he warned.
Karnataka could lose around Rs 15,000 to Rs 20,000 crore in revenue due to the rate cuts, but Siddaramaiah emphasized that citizens’ welfare is more important. He also urged the government to return the GST compensation cess collected on products harmful to society, like cigarettes and alcohol, back to the states.
“Our goal is to build an economy that boosts purchasing power, broadens the tax base, and ensures prosperity for everyone,” he said. “Governance isn’t just about optics; it’s about empowering every citizen of Karnataka and India.”
Meanwhile, Karnataka’s Heavy and Medium Industries Minister M.B. Patil criticized Prime Minister Modi for ignoring early warnings about GST flaws. “Rahul Gandhi raised these concerns for nine years. Despite that, the government didn’t act until now. People had to suffer for too long due to their stubbornness,” Patil said.
He welcomed the recent two-tier GST system but blamed the government’s inflexible approach for the hardships faced by citizens over the years.
The recent GST reforms are seen as a positive step towards making taxes fairer and reducing costs for ordinary people, but leaders are calling for more transparency and proper implementation to ensure the benefits truly reach the common man.
