Overview
- Siddaramaiah wrote to Prime Minister Narendra Modi urging compensation to states for revenue lost after the 56th GST Council’s rate rationalisation.
- He reported gross GST growth of 3.3% and net domestic growth of 1.7% year-on-year for September–November 2025, far below last year’s comparable rates.
- He warned national net GST collections could fall to ₹14.6 lakh crore versus an estimated ₹15.5 lakh crore this year, implying an ₹85,000 crore gap that could widen to ₹1.2 lakh crore if the trend persists.
- For Karnataka, he cited 3.1% net GST growth in September–November and projected a ₹5,000 crore shortfall this year and ₹9,000 crore in 2025–26, excluding an additional ₹9,500 crore loss from the non-merger of the compensation cess.
- He asked the Centre to share pan masala cess proceeds 50:50 with states and proposed fixing 2024–25 as the base year for revenue calculations grossed up for compensation cess, noting no Union response was reported.