Union govt clearing GST compensation in instalments: CM Bommai

Bommai said when GST was implemented, it was decided that compensation would be given for only five years

Chief Minister Basavaraj Bommai on Wednesday said that the Union government is clearing GST compensation in instalments.

Bommai was speaking to reporters at Mysuru Airport in Mandakalli, near here.

He said when GST was implemented, it was decided that compensation would be given for only five years. The GST Act was passed in Parliament and five years was fixed.

During Covid-19, even though there was no collection for two years, the state received the share.

As per the norms, the Union government has to give the states' share after the tax collection but, the Union government has given the compensation even without tax collection.

"We have asked for extension for two years but the authorities have claimed it is not possible owing to legal matters," he said.

The government is also clearing the pending share and recently, the state received Rs 8,800 crore and the remaining will also be cleared, the Chief Minister informed.