STOCK MARKET BSE NSE

Special council session to discuss GST relief: FinMin Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman on Thursday said GST compensation for all states, including Karnataka, is being worked out.

Published: 02nd July 2021 05:55 AM  |   Last Updated: 02nd July 2021 05:55 AM   |  A+A-

Union Finance Minister Nirmala Sitharaman, who is on a two-day visit, in Bengaluru on Thursday | VINOD KUMAR T

By Express News Service

BENGALURU: Union Finance Minister Nirmala Sitharaman on Thursday said GST compensation for all states, including Karnataka, is being worked out. On a two-day visit to the state, Nirmala told media persons that all concerns regarding the GST compensation will be discussed at a special session of the GST council.

“I have promised to hold a special session where we will discuss all GST compensation-related issues,” she said. Many states, including Karnataka, have asked for an extension of the GST compensation period beyond 2022 when it is set to end. This year, the amount is expected to be around Rs 18,000 crore.

During the last GST council meeting, Home Minister and Karnataka’s representative in the GST council, Basavaraj Bommai, had sought pending dues of Rs 11,000 crore to Karnataka. The state has so far received Rs 1,776 crore from the total pending dues in this fiscal. When asked about pending GST dues towards Karnataka, the minister only said that compensation for all states is being worked out.

“I can’t tell you off the cuff. These are amounts which are determined based on the formula which was arrived at last year and that is the basis on which the distribution will start,” she said, when asked how much compensation Karnataka will receive this fiscal year.

The Union Government has decided to borrow and pass it on as GST compensation to states just like last year to make up for losses arising out of the Covid-19 pandemic. During the 2020-2021 fiscal, the Centre had borrowed and passed on Rs 12,047 crore to Karnataka to offset losses arising out of the pandemic in GST compensation.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp