Karnataka had urged to the Centre to compensate for the GST revenue loss due to COVID-19 induced lockdown and floods in the state. The Karnataka Home Minister had said in GST Council 41st Meeting that state’s tax revenue was estimated at ₹1.8 lakh crore but due to COVID 19 and flood, the economic growth cannot be achieved. He futher said that despite such problems, the state had managed to collect 71.61 per cent of the said target, which is higher than other states. Even then, the GST Compensation for four months works out to around ₹13,764 crore. He had further said that it is appropriate for the Centre to facilitate states to help borrow money and compensate for the losses to the state.
