Kolkata, September 21, 2025 — West Bengal Chief Minister Mamata Banerjee has stirred the political waters again, accusing the central government of taking undeserved credit for the recent Goods and Services Tax (GST) rate cuts. According to her, the initiative to reduce GST rates did not originate in New Delhi but in the states—particularly her own.
Speaking to reporters on Sunday, Mamata said that West Bengal had strongly pushed the proposal during GST Council meetings. “We had sought a lowered GST long before this announcement. Now the centre is celebrating it as if it was entirely their idea. That is not true,” she remarked.
Mamata’s Key Argument
Banerjee pointed out that the centre’s much-touted “GST savings festival,” rolled out ahead of Navratri, is being promoted as a gift from Prime Minister Narendra Modi’s government. She, however, insists the groundwork was laid by state governments, and that West Bengal is now facing the brunt of the financial cost.
“We are losing close to ₹20,000 crore in revenue due to the revised GST slabs. Still, we supported the cuts because people deserve relief. But why should the centre monopolize the credit?” Mamata asked, her tone mixing frustration with defiance.
Her statement reflects a broader complaint among several opposition-ruled states: that the centre dominates the narrative on tax and welfare policies, even when the decisions stem from consensus at the GST Council.
The Revenue Trade-Off
For West Bengal, a ₹20,000 crore shortfall is no small matter. That figure roughly equals what the state spends annually on some of its flagship welfare schemes, including rural development and health programs. Economists suggest the state may have to seek alternative funding or demand higher compensation from the centre to plug the gap.
Banerjee, however, appears less focused on the technicalities and more on the political optics. By highlighting the revenue loss, she is framing the state as making a sacrifice for citizens, while accusing the centre of reaping the political rewards.
Centre’s Pitch
Prime Minister Modi had announced that citizens would enjoy a “double bonanza” this festive season—lower GST on several goods and added income tax exemptions. Government ads and speeches described the move as part of the centre’s effort to ease financial burdens on households during tough economic times.
For many voters, that messaging may be persuasive. But Mamata is working hard to rewrite the script, reminding them that the GST Council is a federal body, not a one-man show.
Political Undertones
This spat isn’t just about numbers. It taps into the deeper political rivalry between Mamata Banerjee and the Bharatiya Janata Party (BJP). For years, she has accused the Modi government of sidelining states, whether in handling natural disasters, distribution of central funds, or tax policies.
By bringing up the GST issue now, she is trying to remind her electorate that the centre’s claims of generosity may come at the expense of states’ coffers.
Political analysts say her timing is deliberate. With elections on the horizon in several states and the general election cycle approaching, the battle for narrative control is intensifying. If the public sees relief measures as state-driven rather than centre-driven, opposition parties could gain political mileage.
Why This Matters Beyond Bengal
GST was designed as a cooperative federal system where both centre and states have a say in tax matters. However, the perception that the centre drives all major decisions has been a sore point for many state governments.
If Mamata’s criticism gains traction, it could embolden other states to publicly claim ownership of specific proposals they make in the Council. That would mark a shift from the usual practice of letting the centre take the spotlight.
Moreover, as the economic strain from GST rate cuts grows, states may become more vocal about demanding compensation. This could create new fault lines in centre-state relations over fiscal federalism.
The Road Ahead
For now, the “GST savings festival” is being marketed aggressively by the centre as a win for consumers. But Banerjee’s remarks suggest the debate is far from over. The narrative battle between the centre and states will likely continue, especially if the financial pinch felt by states like West Bengal deepens in the coming months.
As one Kolkata-based economist put it: “The GST rate cut is good for households, no doubt. But politics is about perception. If Mamata can convince people that the centre is taking undue credit, it could reshape the way voters interpret future tax reliefs.”
Conclusion
Mamata Banerjee’s criticism may appear as just another political skirmish, but it highlights a serious issue—who really drives decisions in India’s federal system? While citizens may enjoy cheaper goods this festive season, the states bearing the financial cost are demanding recognition.
Whether the centre acknowledges that or not, the episode has underlined one truth: in Indian politics, credit can sometimes matter as much as policy itself.