GST Reforms: Relief for the People, Revenue Gap Concerns for Andhra Pradesh

GST reforms introduce tax cuts on various goods and insurance policies, which are expected to lower prices and provide relief to the poor. However, Andhra Pradesh's lack of compensation request from the Centre could lead to a revenue gap. CPI(M) and Congress critique the governance and demand state compensations.

The recent overhaul of the Goods and Services Tax (GST) regime has sparked both praise and concerns. Andhra Pradesh CPI(M) secretary V Srinivas Rao commended the price reduction for common goods but criticized the state government for not requesting compensation from the Centre, which might result in a state revenue shortfall.

During the GST Council meeting, significant tax reductions were approved for everyday items, aiming to benefit the poor and middle-class. Rao pointed out that while other southern states have sought compensation, Andhra Pradesh has refrained, potentially burdening its residents with indirect taxes.

The Andhra Pradesh Congress Committee also echoed concerns, identifying the reforms as politically motivated and demanding that revenue-losing states be compensated. BJP representatives argued the changes would aid economically vulnerable groups, ensuring that Modi's policies prioritize the welfare of the poor.

(With inputs from agencies.)