West Bengal Chief Minister Mamata Banerjee has sharply criticised the Central government over the recently implemented GST 2.0 framework, which came into effect nationwide on September 22. She alleged that the Centre was attempting to claim “undue credit” for lowering GST rates while leaving states to absorb the financial strain caused by the new structure. Banerjee pointed out that the state of West Bengal alone is expected to lose nearly ₹20,000 crore in revenue due to this transition, and she questioned how states would make up for such a steep shortfall when the Centre itself would not be contributing financially to address it.
Speaking at the inauguration of a Durga Puja in Kolkata, Banerjee stressed that it was her demand to remove the additional GST burden on common people, but the Centre was projecting the move as its own achievement. She reiterated that while citizens may benefit from lower GST rates, state governments would be forced to bear the brunt of declining revenues, leaving them with the challenge of finding alternative ways to meet developmental and welfare expenditure. To make the state’s stance clear to the public, Banerjee announced that her government would soon launch an advertisement campaign outlining the financial impact of the new GST structure on West Bengal.
The revised GST 2.0 has introduced significant changes by replacing the previous four-slab system with two main tax brackets—5 per cent on essential items and 18 per cent on most goods and services. Additionally, ultra-luxury products and so-called “sin goods” like tobacco, pan masala, and casino services will now be taxed at a much higher rate of 40 per cent. While the Centre has argued that this overhaul will simplify compliance procedures for businesses and ultimately reduce costs for consumers, several states have expressed strong concerns about the anticipated revenue loss.
Prime Minister Narendra Modi, in his remarks on Sunday, had described the reform as the beginning of a “GST savings festival,” presenting it as part of a “double bonanza” for households when combined with recent income tax exemptions. He suggested that families would experience more disposable income and overall relief in the long run. However, Mamata Banerjee has countered this optimistic narrative, firmly asserting that the Centre may claim victory, but it is the states that will be left grappling with the real costs of implementing the new system. In her view, while the reforms may appear consumer-friendly on the surface, they threaten to destabilise state finances and shift the burden of fiscal management squarely onto regional governments.
