GST reforms implemented without enough study, likely to return to old stand, says K N Balagopal

THIRUVANANTHAPURAM: Finance Minister K N Balagopal said states including Kerala have played a role in the decision of the GST Council. Not a single state has raised any objection to the issue of reducing the prices of products. However, he said that the reform was implemented without enough study.

‘People should get the benefits. However, many companies will not provide the benefits to the people when taxes are reduced. This issue has been agreed upon by the union ministers and others. After a few months, things may return to the old situation. Moreover, no proper studies have been conducted as part of the GST reform. There are opinions that Kerala may lose from Rs 50,000 crore to Rs 2,00,000 crore.

If this much money is lost in a year, there will be no money for social welfare pensions, salaries and development. The states have no other way to generate other income. 41 percent of the total income of all states comes from GST. Once that is lost, it is a big issue. It is unclear what will be done to make up for this loss. People will be able to buy goods at lower prices only if they get their salaries,’ said the minister.