K’taka seeks release of pending compensation of Rs 11,000 crore from GST Council

Bengaluru: The Karnataka government asked the GST council to release compensation of Rs 11,000 crore to the state that is pending for the 2020-21 financial year.

Home Minister Basavaraj Bommai, who represents the state in the GST Council, which met today under the Chairmanship of Union Finance Minister Nirmala Sitharaman, requested it to extend the loan facility for compensation to the states to 2021-22 fiscal, his office said in a statement.

The Minister also discussed the demand that the GST compensation to states be extended beyond 2022.

Bommai further said that goods like oxygen equipment, PPE kits and medicines for black fungus should be included in the list of concessional goods.

He also suggested bringing down tax rates on Covid- related goods from 12 per cent to 5 per cent for medical grade oxygen, oxygen concentrators/generators, pulse oximetres and testing kits till August 31.