Bengaluru
Karnataka’s Revenue Minister, Krishna Byre Gowda, recently expressed his disbelief at the comments made by opposition leader R Ashok concerning the Goods and Services Tax (GST) and the Finance Commission. Gowda criticized Ashok for his apparent lack of understanding, saying, ‘It’s unfortunate that the leader of the opposition doesn’t have as much knowledge as a typical groundnut farmer regarding the differences between the GST Committee and the Finance Commission.’
He took issue with Ashok’s sarcastic remark about whether delegates at the GST meeting would ‘eat peanuts,’ considering it an insult to his position. Gowda highlighted the importance of understanding GST, which is a unified tax system replacing various older taxes like VAT and CNVAT. He explained that GST consists of Central Goods and Services Tax (CGST), State Goods and Services Tax (SGST), and Integrated Goods and Services Tax (IGST).
Gowda elaborated on the purpose of GST meetings, where decisions are made about the taxation of goods and services and the tax rates that apply. He pointed out that the Finance Commission, a constitutional body, is responsible for distributing central tax revenue among the states.
Additionally, he lamented the reduced tax autonomy for states following the GST’s introduction. Despite Karnataka contributing significantly to central taxes, it receives a minimal return, and the state’s share of tax revenue has decreased. Gowda urged opposition leaders to work together for the betterment of Karnataka, emphasizing the need to address the injustices faced by the state beyond party politics.
