Karnataka Chief Minister Siddaramaiah has written a letter to Prime Minister Narendra Modi in which he warned that GST rate cuts have created a serious financial strain on states. He said that the new revenue data after the rate rationalisation approved in the 56th GST Council meeting confirmed earlier fears of a “potential fiscal shock".

He emphasised that while the states supported the rate reductions in the “larger public interest of easing the burden on citizens and to stimulate economic growth", the resulting fiscal strain is “mainly being borne by the States".

Quoting the latest figures, the Chief Minister highlighted a major slowdown in national GST collections. He said that the growth of gross GST collection during September to November 2025 has slowed down to 3.3% as against 9%

See Full Page