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

Karnataka's Deputy Chief Minister and Revenue Minister G. Parameshwara has stated that the ongoing drought in the state may negatively affect GST collections. He informed reporters that drought and crop losses have led to estimated financial losses of around ₹46,000 crore for the state. Parameshwara also mentioned that the government has requested a loan of between ₹10,000 crore and ₹11,000 crore to address the shortfall.

He emphasized that the government is prepared for the impact and is exploring ways to enhance GST collection. Karnataka has consistently ranked second in GST collections nationwide, a fact that was presented at every GST Council meeting. Parameshwara highlighted that the State has sought a review of Sections 79A and 79B of the Land Reforms Act, which have been removed for various reasons.

He stated that several representations have been received seeking a reevaluation of these provisions.