Bommai urges Centre to compensate for GST revenue loss


PTI, Aug 28, 2020, 8:21 AM IST

Bengaluru: Karnataka on Thursday urged the Centre to compensate for the GST revenue loss due to COVID-19 induced lockdown and floods in the state.

Home Minister Basavaraj Bommai who represented Karnataka in the 41st GST Council Meeting said the state”s tax revenue was estimated at Rs 1.8 lakh crore.

“However due to the coronavirus and floods, achieving economic growth will be difficult,” a statement issued by his office quoted Bommai as saying during the virtual GST council meeting.

The Home Minister pointed out that despite the challenging situation, the state has managed to collect 71.61 percent of the said target, which is higher than other states.

Yet, the GST compensation amount for four months works out to around Rs 13,764 crore. Reimbursement to the state by the Centre is crucial for the state”s economy, Bommai said in the meeting.

Underlining that there is a constitutional provision under the GST regulations to pay the state for the shortage in revenue, Bommai insisted that the dues be paid immediately.

According to Bommai, the cess collected to compensate for the revenue losses to the state goes directly to the Centre.

“This makes states borrowing difficult,” he added.

The Centre, said Bommai, has the power to impose special taxes enabling states to raise money.

Centre also has the power to extend the imposition of special taxes beyond 2023.

“Hence, it is appropriate for the Centre to facilitate states to help borrow money and compensate for the losses to the state,” the Home Minister said.

On behalf of Karnataka, he extended all support to the Centre to overcome the prevailing financial crisis in the country

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Bantwal shed collapse: Death toll reaches 3

Fire breaks out at supermarket in Mumbai; no casualty

Bommai congratulates Dr Veerendra Heggade for nomination to Rajya Sabha

New COVID-19 Omicron sub-variant BA.2.75 detected in countries like India: WHO

Abandoned bike on Maravoor bridge: Police seek help to locate missing man

Huge tree branch falls on former minister Motamma’s brother’s car, no casualty

Dharmasthala Dharmadhikari Veerendra Heggade, 3 others nominated to Rajya Sabha


Related Articles More

Bantwal shed collapse: Death toll reaches 3

Puttur: Two arrested for killing python, hanging it on forest office door

Bommai congratulates Dr Veerendra Heggade for nomination to Rajya Sabha

Abandoned bike on Maravoor bridge: Police seek help to locate missing man

Huge tree branch falls on former minister Motamma’s brother’s car, no casualty

MUST WATCH

Rivers entered the temple premises!

Chandrashekhar guruji case : accused arrested

NEWS BULLETIN 05-07-2022

Heavy Rain : Huge Rock fall in road at madikeri

Land Slide Karnataka Kerala Road Close


Latest Additions

Bantwal shed collapse: Death toll reaches 3

Novel inhalable COVID-19 vaccine is stable at room temperature

Lamborghini launches new model Aventador Ultimae Coupé in India

Fire breaks out at supermarket in Mumbai; no casualty

Puttur: Two arrested for killing python, hanging it on forest office door

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.