Days after the Goods and Services Tax (GST) 2.0 rollout, Telangana Deputy Chief Minister Bhatti Vikramarka Mallu and Kerala Finance Minister K.N. Balagopal, speaking at The Hindu MIND event moderated by TCA Sharad Raghavan , said that GST has eroded States’ fiscal independence and needs a structural rethink. Edited excerpts:

How would you rate GST up to 2022 and after?

K.N. Balagopal : By July 1, 2022, the initial five-year GST period had ended. Until then, compensation was assured by the GST Council. States were guaranteed 14% annual growth in revenues. That was like a very good honeymoon phase.

But once the compensation ended, difficulties began for the States. For instance, if the revenue growth had been maintained at that rate, Kerala would have received ₹54,000 crore last y

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