Basavaraj Bommai meets FinMin Nirmala Sitharaman; seeks release of pending compensation of Rs 11,000 crore from GST Council

Bengaluru: Home Minister and Karnataka’s representative in the GST council Basavaraj Bommai met Union Finance Minister Nirmala Sitharaman on Friday and sought the release pending compensation from GST Council.

It is said that Rs 11,000 crore to the state is pending for the 2020-21 financial year.  The state has so far received Rs 1,776 crore from the total pending dues in this fiscal. Sitharaman said that compensation for all states is being worked out.

In order to make up for losses arising out of the Covid-19 pandemic, the Union Government has decided to borrow and pass it on as GST compensation to states just like last year.

During the 2020-2021 fiscal year, the Centre had borrowed and passed on Rs 12,047 crore to Karnataka to offset losses arising out of the pandemic in GST compensation.