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

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.