Thiruvananthapuram | The ruling CPI(M) in Kerala on Friday raised concerns over proposed revisions to the GST rate structure, warning that the changes could cause "massive financial losses" to the state.

CPI(M) state secretary M V Govindan, speaking at a press conference here, said financial experts estimate Kerala "could lose between Rs 8,000 crore and Rs 80,000 crore due to the GST revisions." He noted that the proposed changes come at a time when trade tariffs announced by the US are also expected to "impact the financial situation in Kerala and across India." Govindan highlighted a key revision concerning GST on lottery revenue. He said the rate is proposed to increase from the current 28 per cent to 40 per cent.

"In 2017, the GST on lottery was 12 per cent and was raised to 28 per cent in 2020. Therefore, in the last eight years, there has been a 350 per cent increase," he contended.

"Many poor people depend on lottery earnings for their livelihood, and the state has funded various welfare schemes from lottery revenue. If the lottery system is disrupted, it will create a huge crisis in Kerala," Govindan claimed.

He also accused the central government of attempting to "ruin the state's financial health." He added that representatives of those affected recently met Union Finance Minister Nirmala Sitharaman, who assured them that the issue would be discussed in the GST Council.