State wants a relook at the GST regime and a bigger tax share from Central pool. As the five year old extension period ends in July 2022, Kerala is set to seek at the Goods and Service Tax Council meet on Friday extension of compensation period and a comprehensive relook at the GST regime for an extension of another five years, due to the decline in revenues due to Covid- 19 situation.
Finance Minister of Kerala, K. N Balagopal will attend the 45th meeting of the council in Lucknow. Further the State government is expected to raise the issue of falling of tax revenues before the Council. Kerala Government also opposed the move to bring petroleum products under the ambit of GST.
According to the Finance department of the state tax growth has witnessed a decline since the rollout of GST. The revenue deficit grant will see a decline from around Rs 19,000 crore now to Rs 4000 crore in the coming fiscal year said by, K. N Balagopal Finance Minister of Kerala.