"Central Govt's GST simplification in wake of Bihar elections will cause loss...": Karnataka CM Siddaramaiah

Oct 03, 2025

Mysuru (Karnataka) [India], October 3 : Karnataka Chief Minister Siddaramaiah on Friday said that the central government's decision to simplify the Goods and Services Tax (GST) in the wake of the Bihar elections will cause an estimated loss of Rs 15,000 crore to the state.
Speaking to the media at his residence, the Chief Minister said, "the central government implemented the GST in 2017 and fixed the GST rate. Will the central government, which has collected higher rates for the last eight years, return that money? The center is busy patting itself on the back by reducing the GST rate it had increased itself."
He said that there is no need to claim that GST has been simplified and reduced because of the Bihar elections.
Commenting on the fact that only Rs 3,200 crore has been given to the state as tax money from the center, he said that Uttar Pradesh is getting 18 percent and the state is getting only 3.5 percent. It is unfair that Karnataka is giving Rs 4.5 lakh crore as tax to the center, we get only 14 paise per rupee from the state. The special grant given to the state in the 15th Finance Commission was cancelled by the Union Finance Minister.
"As recommended by the commission, we were not given Rs 5,490 crore, Rs 3,000 crore for lake development, Rs 3,000 crore for road construction, and Rs 5,000 crore for the Bhadra Upper River Project. A total of Rs 17,000 crore. The grant that was supposed to come has been misappropriated. Like last time, this time too, if necessary, they will seek court assistance and get central funding," he said.
"Although it is a challenge for the government to cover the cost of guarantees amid low central funding, the challenge will be faced boldly. State governments will face more losses due to GST simplification. Karnataka will lose an estimated Rs 15,000 crore annually due to this. The central government is providing GST relief as per the convenience of the states joining the NDA," Siddaramaiah said.
He said that the job of Karnataka's BJP MPs is to praise Modi and not to look after the welfare of the state.
Commenting on the progress of the caste survey work in the state, he said that a survey of 3 crore people from about 80 lakh houses has already been completed in the state and it is hoped that the survey work will be completed by October 7. A survey of 1.80 crore families needs to be conducted.
He said that the next decision will be taken after observing the progress of the survey.
Reacting to Union Minister Prahlad Joshi's statement that the government is conducting the survey with the view of conversion and caste division, "Prahlad Joshi, who is a Union Minister, should explain the purpose of the caste survey to be conducted by the Centre. Does the Central Government have an intention to divide caste and religion? An economic, social and educational survey is being conducted in Karnataka, with the aim of obtaining information about the condition of the people. Castes like Brahmin, Christian, etc. were mentioned in the Kantaraju report. If people voluntarily enter their caste, the government will not be responsible for it. But the Commission has removed these castes from the list. Therefore, the Commission will get information about the caste that people voluntarily declare. There is no question of dividing caste in this. The BJP is misleading people for political purposes," he said.
Replying to opposition leader Ashok's statement that if the farmers' problems are not resolved, the government will be dead, he said that even though Ashok is the opposition leader, he speaks under the direction of the RSS. He said that Ashok is making allegations for politics.