West Bengal Finance Minister has said that the total revenue loss from the GST Council’s rate rationalisation will amount to Rs 47,700 crore, raising concerns about its impact on state finances.
The comment comes after the GST Council approved a two-slab structure of 5% and 18% effective September 22, 2025, discontinuing the 12% and 28% slabs. In addition, a 40% GST on sin and luxury goods such as cigarettes, pan masala, luxury cars, online gaming, and aerated drinks has been introduced.
Key highlights from the FM’s statement
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The estimated revenue loss due to GST rate rationalisation is pegged at Rs 47,700 crore.
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States are worried about the compensation gap arising from this shortfall, as compensation cess will also be phased out.
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While the Centre expects Rs 45,000 crore in revenue from the 40% levy on sin goods, states fear this will not fully offset the losses.
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The FM warned that states may face pressure on welfare spending if revenue protection is not ensured.
The statement reflects the growing tension between the Centre and states over GST reforms, even as the Council reached a consensus to simplify the structure into two slabs.
