GST compensation to Karnataka likely to be less in 2018-19:CM

The GST compensation to Karnataka was likely to be "less" during the current year, compared to Rs 7,500 crore in 2017-18, Chief Minister H D Kumaraswamy said in the state assembly Friday.

He was replying to questions raised by opposition members during the discussion on The Karnataka Goods and Services Tax (Amendment) Bill, 2018 that was passed by the House.

"After receiving GST compensation of Rs 7,500 crore from the centre in 2017-18. This year it may be less....," Kumaraswamy said.

The Chief Minister, however, did not give any figure or cite any reason for the projected decrease in GST compensation from the Centre.

Earlier participating in the discussion, BJP members Vishweshwar Hegde Kageri, Basavaraj Bommai and others sought to know from the government whether the state was receiving adequate compensation from the central government, and was there any loss to the state from the new taxation regime.

Pointing out there were several loopholes in the GST, they advised the government to take up the issues with the centre and fix the leakage.

Noting that state government had limited powers with respect to GST, Kumaraswamy said, "we will find the loopholes and fix them. We will take all necessary steps to check leakage."