K'taka CM urges Centre to extend GST compensation period upto 2024-25

Karnataka Chief Minister Basavaraj Bommai on Monday requested the Centre to extend the GST compensation for a period up to 2024-25.

Bommai presented the request when he called on Union Finance minister Nirmala Sitharaman in New Delhi on Monday.

"The period of GST compensation, being paid by the Union government, is set to end in March 2022. But the states are facing a resource crunch due to the COVID-19 impact. In this background, the Union government should extend the GST compensation time limit up to 2024-25 to help the states," said Bommai.

"The Union government had provided GST compensation for the last two years through loans. The same gesture should continue for three more years and the loans could be repaid through a collection of GST Cess," he added.

The chief minister held a meeting with all MPs from the State in the national capital today.



The meeting was also attended by Union Finance Minister Nirmala Sitharaman and Parliamentary Affairs Minister Pralhad Joshi. Union Ministers A Narayanaswamy, Bhagwanth Khuba and Rajeev Chandrasekhar were also present at the meeting.

Source::: Business Standard,  dated 08/02/2022.