Chief Minister Siddaramaiah on Friday called for the Centre’s proposed GST rate rationalisation to be backed by a robust revenue protection framework for states, ahead of the GST Council meeting next week. He said the rationalisation process should not compromise state finances and sought the inclusion of three safeguards in the reform. “The rationalisation of GST rates must be supported by a robust revenue protection framework for states, a supplementary levy on sin and luxury goods, and a guaranteed compensation mechanism for at least five years,” Siddaramaiah said in a statement here.

His remarks came against the backdrop of a consultative meeting on GST rate rationalisation held in New Delhi on Friday, where representatives from eight opposition-ruled states, including Karnataka, voiced concerns over potential revenue losses from the Centre’s current proposal.

Briefing reporters after the meeting, Karnataka Finance Minister Krishna Byre Gowda said each state is expected to lose 15-20 per cent of its current Goods and Services Tax (GST) revenue.