HDK meets Jaitley, seeks extension of GST compensation period
Team Udayavani, Dec 27, 2018, 1:57 PM IST
New Delhi/ Bengaluru: Chief Minister H D Kumaraswamy met Union Finance Minister Arun Jaitley here on Thursday and sought an extension of the GST compensation period till 2025, contending that the state’s revenue deficit has widened to 20 per cent post-GST regime.
At present, the states are entitled to get compensation for the first five years since the implementation of Goods and Services Tax (GST) in 2017, that is till 2022.
At the meeting held in the Parliament complex, Kumaraswamy informed Jaitley that the revenue deficit of the state against protected revenue may continue even after 2022 which is expected to affect fund allocation for various welfare schemes and infrastructure projects, an official statement said.
Although there are an improvement in the Goods and Services Tax (GST) collections in the state in the current fiscal, compared to the financial year 2017-18, the gap with protected revenue is “substantial” and may well continue beyond 2022.
“During the VAT regime, Karnataka used to register 10-12 per cent of average growth every year. But post-GST, the revenue deficit is found to be 20 per cent against protected revenue,” the chief minister said in a representation made to the Union finance minister.
All efforts are being made to minimise the revenue leak, but Karnataka has found certain fundamental structural reasons for this deficit such as current tax rates and less than expected contribution of services sector among others, Kumaraswamy said.
According to official data, in 2017-18, the Centre had released Rs 41,147 crore to the states as GST compensation to ensure that their revenue is protected at the level of 14 per cent over the base year tax collection in 2015-16, as per the official data.
Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.
Top News
Related Articles More
Chitradurga: Murugha Math seer surrenders before court
‘Will PM still remain silent?’ Priyanka Gandhi slams BJP over Hassan ‘sex scandal’
Congress demands arrest of JD(S) MP Prajwal Revanna
Woman files complaint after miscreant shares her obscene pictures on social media
Padubidri: Man thrashes bus driver in road rage incident
MUST WATCH
Latest Additions
Chhattisgarh: 9 killed, 23 injured as goods vehicle collides with truck in Bemetara district
Delhi Police seeks info from social media platforms on source of doctored video of Amit Shah
If voted to power, Congress will conduct caste, economic survey: Rahul Gandhi
Chitradurga: Murugha Math seer surrenders before court
Thomas Cup: India seal quarterfinal berth with 5-0 win over England