BENGALURU: Karnataka managed to bring to the fore the issue of releasing GST compensation of Rs 2,333 crore due to the state, at the 52nd Goods and Services Tax (GST) Council meeting chaired by Union Minister for Finance & Corporate Affairs Nirmala Sitharaman in New Delhi on Saturday.
Karnataka Revenue Minister Krishna Byre Gowda, who represented Chief Minister Siddaramaiah, claimed that as he raised the issue, Nirmala instructed the officials concerned to release the balance of GST compensation at the earliest.
“On our request, unlabelled millet mixes are exempt from GST. Labelled millet mixes will attract only 5% of GST instead of 12 to 18%,” he said.
The GST Council recommended nil rate for food preparation of millet flour in powder form and containing at least 70% millets by weight when sold in loose form, and 5% if sold in pre-packaged and labelled form.
The state has been demanding the GST exemption on millets for a long time and the Council ceding to it is considered a breakthrough for farmers as it helps ragi growers who are predominant in the districts of Old Mysuru region.
As for the compensation, Gowda presented the state’s case as advised by Siddaramaiah and insisted that the Finance Minister take action as the dues are yet to be paid despite the CAG audit authenticating it. Ahead of the GST Council meeting, Gowda had got a briefing from commercial tax department officials at a meeting on Wednesday. He had also written to the GST Council to bring the state’s demands on the agenda.