Group of Ministers (GoM) constituted to rationalize GST After meeting Finance Minister Nirmala Sitharaman on Friday, the panel’s chairman and Karnataka Chief Minister Basavaraj Bommai said an increase in rates and revenue would happen soon. The ministerial panel is to submit its report in the next two months.
“Very soon, I will call the first meeting of GoM. It was in this background that I met him (Finance Minister).”
Bommai said he discussed important issues related to rationalization of Goods and Services Tax (GST) rates and ways to increase revenue during his meeting with the Union Finance Minister.
In September, the Goods and Services Tax (GST) Council had decided to set up two GoMs to augment revenue. Bommai’s seven-member group constituted by the finance ministry includes West Bengal Finance Minister Amit Mitra and Kerala Finance Minister KN Balagopal as well as members of the GST Council from Goa, Bihar, Uttar Pradesh and Rajasthan.
On a question whether the Center has released pending GST compensation to Karnataka, Chief Minister Bommai Said that it has been approved till the financial year 2019-20. For FY21, the state was to meet ₹11,800 crore which is being released in phases.
Center approved for the current financial year GST Compensation NS ₹18,000 crore by way of loan, the CM said, adding a higher amount was sanctioned as the state GST collection has improved as compared to the previous year.
Apart from GST, Bommai sought more support for Karnataka under the programs implemented by NABARD. “I have demanded more allocation to the state under an infrastructure scheme of NABARD.”
Bommai requests increase in loan amount from present ₹NABARD gave Rs 1,500 crore for farmers and rural development. He further mentioned that FM Sitharaman will visit the state and participate in different programs of NABARD and SIDBI.
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