The GST Council did not discuss the issue of compensating States for revenue loss due to the latest rate cuts , the Finance Ministers of both Telangana and Kerala, members of the Council, told The Hindu . They added that GST has substantially increased the dependence of the States on the Centre, and has eroded their ability to raise their own funds for developmental expenditure.

Speaking at The Hindu Mind event in New Delhi , Telangana Deputy Chief Minister Bhatti Vikramarka Mallu and Kerala Finance Minister K.N. Balagopal opened up about the issues that the States had with the current Centre-States fiscal dynamic.

Also Read: Will the GST rate cuts boost the economy? | Explained

“The Government of India had assured the States that they would get 14% tax as against the pre-G

See Full Page