Overview
- Siddaramaiah has written to the Prime Minister asking the Union government to compensate states for revenue losses following GST rate rationalisation approved at the 56th GST Council.
- Official data cited in the letter show gross GST growth slowed to 3.3% in September–November 2025 from 9% a year earlier, with net domestic GST growth at 1.7% versus 8.9%.
- He warns the Centre could face a shortfall of about ₹85,000 crore this year, potentially rising to ₹1.2 lakh crore for the full financial year if trends persist.
- For Karnataka, the state projects a ₹5,000 crore shortfall this year and ₹9,000 crore in 2025–26, excluding an additional estimated ₹9,500 crore due to non‑merger of the compensation cess.
- The CM demands a 50:50 share of revenue from the new pan masala cess and flags concerns over reports of routing it through a centrally sponsored health scheme, as no formal Centre response has been reported.