BENGALURU: Karnataka Chief Minister Siddaramaiah has written a letter to Union Finance Minister Nirmala Sitharaman on Friday seeking clarification and revised procedure on IGST provisional settlement.
Siddaramaiah pointed out that Rs 798 crore out of IGST settlement has been adjusted out of advance apportionment to make up a shortfall in IGST balance on December 26 last year, when the BJP government was in power.
Siddaramaiah said the government wished to seek details on the accumulation of IGST negative balance until now and raised concerns about the impact on treasury management on the state finances and said there is a huge negative balance of Rs 34,000 crore.
He said to facilitate better understanding, the government sought information on the total amount of negative IGST balance and the methodology employed for distributing this amount among the states for recovery.
Considering the pressing need for resources and potential challenges associated with lump sum reduction, the state government requested the Union government to consider allowing deductions to be made in installments.
The government proposes a phased approach preferably in 10 installments to mitigate immediate impact on state finances. A transparent and collaborative approach in addressing these concerns will contribute to the effective functioning of the financial ecosystem, he said.
Meanwhile Karnataka GST collection at Rs 11,970 crore finished in second place all India behind Maharashtra.
Karnataka’s collection was more than Rs 1,000 crore higher than Gujarat, which managed Rs 10,853 crore.
Tamil Nadu stood at fourth place with Rs 10,255 crore, while Haryana stood a distant fifth with Rs 9,732 crore. UP stood at sixth place with Rs 8,973 crore.