Karnataka Demands Extension Of GST Compensation To States Beyond 2022

Karnataka is one of the best assuming states aback the achievement of GST in 2017

Amid abatement in accompaniment acquirement and GST accumulating in appearance of COVID-19 crisis, Karnataka Chief Minister Basavaraj S Bommai on Thursday accepted the Centre to extend the GST advantage aeon to states above 2022, for three added years.

After a affair with Union Finance Minister Nirmala Sitharaman, Mr Bommai said he additionally discussed the GST (Goods and Casework Tax) ante to the tune of Rs 11,000 crore to be paid to Karnataka in installments.

"The ante that were to be paid from July 2022 are actuality avant-garde through chapter from this year. Along with this, I discussed extending the GST advantage to states above 2022," he told reporters afterwards the meeting.

In the meeting, the CM abreast Ms Sitharaman that the accompaniment GST accumulating has not yet stabilised in appearance of COVID-19 crisis, and it would be added accessible in this advancing acquirement crisis if the GST advantage to states is continued for three added years.

Karnataka is one of the best assuming states aback the achievement of GST in 2017. "However, the COVID crisis aback the aftermost banking year has brought the accompaniment acquirement accumulating bottomward including the GST collections," he said in a representation fabricated to the FM.

Keeping in apperception the acquirement crisis in all states, the Centre had provided the GST advantage accommodation for the 2020-21 budgetary and it has additionally been continued for the accepted fiscal.

"However, the advantage accommodation would abutment the states for alone the accepted banking year, but the appulse fabricated by the COVID on acquirement accumulating will be agitated advanced for abutting few years also. So, it will booty time for GST acquirement accumulating to ability the adequate amount," he said.

"I appeal you to attentive amend the state's appeal on extending the GST compensation," the CM stressed.

In the meeting, Mr Bommai -- who is additionally a affiliate of the GST Council -- additionally flagged that the 15th Finance Commission in its final address for 2021-26 recommended abridgement in Karnataka's allotment in tax corruption to 3.647 per cent, as compared to 4.71 per cent recommended by 14th Finance Commission.

Since Karnataka has apparent the steepest cut of 23 per cent because of the abridgement in the corruption share, he requested the FM to amend the belief of accumbent corruption for administration of assets amid the states.

The CM additionally abreast that the accompaniment government had submitted an added announcement to the Commission in this regard. But the Commission has not advised the state's request.

"This has acutely impacted Karnataka compared to added southern states," he noted.

The CM additionally brought to the apprehension of the FM that the axial government has not advised the 15th Finance Commission advocacy to accolade accompaniment specific grants of Rs 6,000 crore to Karnataka for holistic advance of baptize bodies of Bengaluru and for Peripheral Ring Road.

"... the government of India in its allegorical announcement has not advised the Finance Commission's recommendation. This would be a set aback to the accompaniment which is already artificial due to astringent cuts in tax devolution," he said.

Bengaluru, the IT and start-up hub of the country, has a above addition to the casework area of the civic economy. And the burghal has added abeyant to allure added investments if the analytical basement is improved, he said.

That apart, the NABARD abetment accustomed to altered groups including SC and ST women, Self Help Groups and for basement purposes-- was additionally discussed in detail with the FM, he added.

Mr Bommai on the additional day of his appointment to Delhi is additionally appointed to accommodated Union Health Minister Mansukh Mandaviya and Commerce and Food Minister Piyush Goyal.

(Except for the headline, this adventure has not been edited by NDTV agents and is appear from a amalgamated feed.)

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