Karnataka’s GST collection likely to take a hit: G. Parameshwara

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Deputy Chief Minister G. Parameshwara | Photo Credit: File photo

The prevailing drought condition in the State is likely to impact GST collections, Deputy Chief Minister and Revenue Minister G. Parameshwara said on Monday.

“The State is facing drought and crop losses. This will have an impact across sectors. Financial experts have indicated that GST collections may naturally decline as a result,” he told presspersons. Karnataka has estimated losses incurred due to drought to be around ₹46,000 crore, and that the State has sought about ₹10,000 crore to ₹11,000 crore, he added.

Stating that the extent of the impact will be clear in the coming days, he said that the government maintained adequate buffer and is also examining measures to improve GST collection. “Karnataka is facing a drought of a severity not seen before. Its impact will certainly be felt across sectors, including GST collection,” he added.

He pointed out that Karnataka has consistently ranked second in GST collection in the country, and that the State’s position has been presented at every GST Council meeting. The Chief Minister had earlier deputed Minister Krishna Byre Gowda to represent Karnataka at GST council meetings, where he has presented the State’s position on all relevant issues, he added.

On the recent revision of fee structure for various services in the Revenue Department, he said that fees have been marginally revised in view of the rising cost of living. “Cost of living is increasing. It is natural that charges for certain services are also revised marginally,” he said.

He also said that when there is a shortfall in funds devolved to the State from the Union government, it becomes necessary for the State government to strengthen its own revenue sources.

The Deputy Chief Minister and Revenue Minister G. Parameshwara said that Sections 79A and 79B of the Land Reforms Act that had been earlier removed for various reasons are being reviewed. He told presspersons on Monday that several representations have now been received seeking a review of those provisions. “We are examining the matter. After the review, we will discuss it with the Chief Minister. If it requires Cabinet consideration, it will be placed before the Cabinet,” he said.

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