K'taka CM meets Jaitley, seeks extension of GST compensation period till 2025

New Delhi [India], Dec 27 (ANI): Karnataka Chief Minister HD Kumaraswamy on Thursday met Union Finance Minister Arun Jaitley here and requested to extend the GST compensation period till 2025.
Kumaraswamy sought for the extension as the revenue deficit against protected revenue might continue after 2022, which could affect on making fund allocation for various welfare schemes for the people and infrastructure projects, according to an official statement.
During the meeting, the Karnataka Chief Minister appraised Jaitley about the situation in Karnataka. "During VAT regime, Karnataka used to register 10-12 per cent of average growth every year. But post-GST implementation, the revenue deficit is found to be 20 per cent against protected revenue," said Kumaraswamy.
"All efforts are being made to minimise the revenue leak," said Kumaraswamy, who is on a two-day visit to the national capital to discuss the state's development issues.
Kumaraswamy underlined that despite the difficulties, Karnataka found certain fundamental structural reasons for the revenue deficit such as current tax rates and less than expected contribution of the service sector.
"Though there is an improvement in GST collections in the state in 2018-19 when compared to 2017-18, the gap with protected revenue is substantial and may well continue beyond 2022," Kumaraswamy was quoted in the statement.
Kumaraswamy further said that like many other states, Karnataka has many social sector and infrastructural commitments to improve the lives of the citizens and requested Jaitley to extend the period of GST compensation to 2025 in the state's interest. (ANI)