Mysuru (Karnataka), Oct 3 (PTI) Karnataka Chief Minister Siddaramaiah on Friday said he would approach the courts if necessary to secure the state’s rightful share of central funds.

Speaking to reporters here, he also slammed the Centre for celebrating rationalisation of Goods and Services Taxes (GST), saying there was little to celebrate after eight years of introduction of GST in the country.

Commenting on the Centre refund of Rs 3,200 crore, Siddaramaiah said, “UP is getting 17 to 18 per cent of the central grant while we are getting only 3.5 per cent. Is this justified? We are asking them (Centre) to rectify it.” According to him, every year Rs 4.5 lakh crore tax goes from Karnataka to the Centre whereas the state gets only 14 per cent, which is not proper.

“I am not saying the state should withhold money from the Centre. My point is that the Centre should collect it in a justified manner,” Siddaramaiah said.

To a question if this was intentional, the CM pointed out that the 15th finance commission had recommended special grants for Karnataka but the Centre, especially Finance Minister Nirmala Sitharaman, cancelled it and the state did not get its due share.

“Further, the 15th Finance Commission had recommended Rs 4,590 crore for Karnataka, which was not given to us. Besides it, Rs 6,000 crore, Rs 3,000 for lake rejuvenation, Rs 3,000 crore for peripheral ring road around Bengaluru and Rs 5,400 crore for upper Bhadra scheme were also denied to us. Isn’t this intentional?” he asked.

Siddaramaiah added that Karnataka was supposed to receive Rs 11,490 crore along with an additional Rs 5,000 crore, which has not been released.

Asked whether the state would take legal action, he said, “If needed, we will go to court to get the money.” Regarding the ‘GST Utsav’ being organised by the BJP leaders, Siddaramaiah said the central government introduced the GST in 2017 and fixed the tax rates but after eight years, it rationalised the taxes.

“After rationalisation, will the Centre refund whatever tax it had collected in the last eight years? What is there to pat in the back?” he wondered.

The Chief Minister alleged that the GST rates were revised with an eye on upcoming assembly elections in Bihar.

Siddaramaiah noted that the rationalisation of taxes would result in losses for states and not the Centre.

“We will incur Rs 15,000 crore loss annually. Look at the situation we are in. We cannot oppose the rationalisation. We have to welcome it and we are the ones who will be at loss.” On the ongoing ‘caste census’, he said more than three crore people have been surveyed till Thursday, covering over 80 per cent houses. I hope it will be completed by October 7.

To a question if the survey will be extended, he said, “Let’s see. I hope that the process will be completed by October 7.” Responding to the allegation by some Hindutva outfits that the survey is aimed at helping conversion, Siddaramaiah asked why the BJP leaders were not opposing the caste census ordered by the Centre.

“We are not doing caste survey. We are doing socio-economic and educational survey. How is this going to create rift between castes?” Siddaramaiah said. PTI GMS GMS ROH

State share of central grants dispute may prompt court challenge to secure withheld allocations and contest GST rationalisation. Karnataka's chief executive contends the state has been denied its proper allocation of central grants, citing unreleased finance commission and project-specific funds, and warns the state will pursue judicial remedies if necessary. He further alleges that recent GST rationalisation will cause revenue loss to the state, questions retrospective adjustment of past collections, and frames the distribution and collection practices as unjust.