BENGALURU: Karnataka has received Rs 1,189 crore from the Centre as compensation for the revenue loss it incurred in the past two months due to the implementation of the GST, state agriculture minister Krishna Byre Gowda said today. He said the central government had sent the communication on October 3.
"We have received communication of compensation to the tune of Rs 1,189 crore for July and August towards revenue loss we incurred due to GST rollout," Gowda, who represents Karnataka at Goods and Services Tax (GST) Council meetings, told PTI.
Gowda said he hoped that in a matter of one or two years, Karnataka no longer relied on compensation.
"It is still an evolving situation.. In the coming days, the states may not have to face any shortfall... Maybe
things may change in a few months," he said.
The agriculture minister also wished that revenue flow in the state improves.
"We are hoping revenues of the state will improve, and we wouldn't have to press for compensation.. In a matter of one or two years, we may not have to rely on compensation," Gowda said.
Replying to a query, Gowda said it will be difficult to predict accurately the quantum of revenue shortfall because of the unavailability of accurate data.
On September 21, Gowda had said that the state had faced a revenue shortfall of about Rs 600 crore in July due to "GSTN glitches."
GSTN is a technology backbone for GST and administers registration, invoice uploading, tax return filing and tax payment system under the new indirect tax regime.