New Delhi: Kerala Finance Minister K. N. Balagopal has issued a stern warning to companies, insisting that the benefits of recent GST rate cuts must directly reach consumers. Speaking after the reforms, he cautioned that the state will closely monitor prices to ensure businesses don’t pocket the gains while ordinary people lose out.
Highlighting the case of cement, Balagopal noted that firms had planned a ₹30–₹35 hike per bag. With GST on cement reduced from 28% to 18%, prices should ideally drop by around ₹30. “The real issue is whether companies will actually pass this relief to the people,” FM stressed.
At the same time, the minister flagged Kerala’s annual revenue shortfall of ₹2,500 crore from reduced GST collections in automobiles, cement, insurance, and electronics. Criticizing the Centre for refusing to compensate states for these losses, he warned that Kerala’s welfare and development programmes could face strain as a result.
