Karnatakawill renew its efforts to convince the Centre to continue granting compensation for the loss of revenue due to implementation of Goods and Services Tax (GST) beyond June 2022 even as the states tax collection is slowly emerging out of the Covid-hit slowdown.Finance department officials said Karnataka has joined other states seeking continuation of GST compensation at least for two more years. Chief ministerBasavaraj Bommai, who holds the finance portfolio and represents the state in the GST Council, will pursue the matter with the Centre. We have already sought for it and further correspondence with the Centre will be done, said ISN Prasad, additional chief secretary, finance department.

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While the state claims Rs 2,500 crore per month on Average, the Centre has released Rs 8,542 crore so far, which includes both general compensation and that for Covid losses for this year, and Rs 11,059 crore is due. The commercial tax department has collected Rs 2,351 crore GST and Rs 1,794 crore sales tax levied on petrol and diesel in September till date, while the state has got Rs 2,000 crore compensation in the month.