Dy CM Bhatti demands compensation for GST revenue losses

Telangana deputy chief minister and finance minister Mallu Bhatti Vikramarka has raised serious concerns over the revenue losses faced by the state due to the Goods and Services Tax (GST) implementation and its ongoing rate rationalisation.

He said that if the earlier VAT system had continued instead of GST, Telangana would have earned Rs. 69,373 crore in the financial year 2024-25, but under GST, the actual revenue was only Rs. 42,443



crore.

This represents a staggering loss of Rs. 27,000 crore in just one year. Cumulatively, since GST was introduced, Telangana has lost around Rs. 83,000 crore in revenue.

Bhatti Vikramarka demanded that, as the Centre now plans another rationalisation of GST slabs, which is estimated to further reduce Telangana’s revenue by Rs. 7,000 crore, full compensation measures must be put in place by the central government to protect the states’ finances.