BENGALURU: In the first tranche in this financial year, Karnataka received Rs 1,776 crore as partial GST compensation for period between April and May. The partial claim for April-May 2020 was disbursed by Centre from whatever compensation cess was collected till September 2020. “I urge that the repayment of GST compensation to the state be settled at the earliest by deciding on a method of external borrowing.
Some states are needlessly taking an unreasonable stand of who should borrow rather than concentrating on who will repay it,” said Home Minister and the state’s representative in GST Council, Basavaraj Bommai. In a statement, he urged the Council to arrive at a consensus in the next meeting and make Rs 11,432 crore of dues up to August available immediately. Karnataka, meanwhile, has agreed to the GST Council’s option of additional borrowing to offset the GST compensation losses arising this year.