Karnataka Chief Minister asked Centre to Extend GST Compensation Period upto 2024-25

Basavaraj Bommai, the Chief Minister of Karnataka, proposed on Monday that the GST compensation be extended till 2024-25.

On Monday, Bommai made the plea to Union Finance Minister Nirmala Sitharaman in New Delhi.

“The GST compensation period, which is being paid by the Union government, will terminate in March 2022. However, the impact of COVID-19 is putting a strain on the states’ resources. To help the states, the Union government could prolong the GST compensation time limit until 2024-25,” Bommai added.

“For the past two years, the Union government has issued GST compensation in the form of loans. “The same gesture should be continued for another three years, and the loans could be repaid through GST Cess collection,” he added.

Today in the national capital, the chief minister met with all of the state’s MPs.

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