Ahead of the GST Council meeting on 3rd and 4th September, Finance and Commercial Tax Ministers from eight States organized a joint meeting in Delhi on 29th August 2025 to discuss on the Centre’s proposal to restructure GST rates. The meeting, held at Karnataka Bhavan, saw representatives from Himachal Pradesh, Karnataka, Kerala, Punjab, Tamil Nadu, Telangana, West Bengal and Jharkhand participate.
Jharkhand Raised Revenue Concerns
Jharkhand Finance Minister Radhakrishna Kishore said that Jharkhand will face a revenue loss of nearly Rs. 2000 Crores, if the proposal is implemented without safeguards. He said Jharkhand, being a smaller manufacturing state, has already suffered revenue losses post-GST as inter-state supplies of coal, iron ore, bauxite and other industrial goods no longer fetch CST revenue. Although the Centre compensated states from 2017 to 2022 based on 14% protected revenue growth, but no permanent mechanism exists thereafter.
Also Read: Minister Radhakrishna Kishore Chaired Pre-Budget Workshop for FY 2025-26 at Project Bhawan Ranchi
States United on Jharkhand’s GST Concern
All eight states endorsed Jharkhand’s concern and agreed that rate rationalisation cannot come at the cost of state finances. They resolved to submit a joint memorandum to the GST Council, demanding that any shortfall be met through a clear compensation framework, additional levies on goods, or a guaranteed five-year compensation window. The ministers stressed that without such measures, states risk severe fiscal imbalance and setbacks to development programmes.
Also Read: Jharkhand Finance Minister Presented Rs. 4296 Crores Supplementary Budget
Centre’s Proposal for Simplified GST Slabs
The Centre has suggested reducing the existing four GST slabs of 5%, 12%, 18% and 28% to a simpler structure by removing the 12% and 28% categories. The Government said that this change would bring down the cost of goods and services, provide relief to consumers, and strengthen economic activity.
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