Kolkata, New Delhi, INDIA. New York, USA.
Business To Business, New Delhi, 18 September 2025: On Thursday, Union Finance Minister Nirmala Sitharaman unequivocally stated that the central government was not contemplating any form of compensation to the states for the prospective revenue deficits resulting from recent reductions in Goods and Services Tax (GST) rates. She emphasized that the financial impact would be equitably distributed, noting that given the devolution of taxes, the Centre’s share would be correspondingly diminished.
The opposition had been exerting pressure on the BJP-led central administration, demanding compensation for potential revenue shortfalls consequent to GST rationalization.
Addressing a BJP-organized panel on GST in Kolkata, Sitharaman explained that during the GST Council’s deliberations, numerous states—particularly those governed by opposition parties—voiced concerns regarding the proposed rate reductions, questioning the implications for their revenue streams and seeking clarity on how any resultant financial gaps might be addressed.