HYDERABAD: Ministers of two Southern States said the implementation of GST was adversely affecting the States, at the ‘South India GST Conclave’ held on Wednesday, organised by FICCI.Karnataka Large and Medium Industries Minister Murugesh R Nirani, Kerala Finance Minister KN Balagopal and Tamil Nadu Finance Minister P Thiagarajan participated in the conclave.
KN Balagopal said that Kerala’s tax collection used to be 14 to 16 per cent before the GST, but it had stagnated since then, which may partly be due to inherent structural defects in the system.“The GST system is very much against the principles of the federal system. The State governments are facing financial problems because of GST,” he said.
P Thiagarajan said the implementation of GST had reduced the resource-generating capacity of States.On the other hand, Murugesh R Nirani expressed his overall satisfaction on GST, saying it helped achieve more tax compliance, but a few issues were to be resolved.