Karnataka Chief Minister Basavaraj Bommai said the Centre has cleared GST dues to the tune of 8,800 crores and the rest will be paid soon. Speaking to the media, the CM said his government had appealed to the union government for extending the GST compensation term by another two years, but it was rejected citing rules.

"However, they are giving us our dues. Only recently, they (Centre) gave us 8,800 crores. The rest of the amount will be paid. There is no doubt about it,” he said.

Regarding the extension of the GST compensation beyond five years, Bommai said the central government has made it clear that the GST compensation may be given only for five years and cannot be extended further. The Chief Minister also underlined that the central government is giving the state’s share of GST.

During COVID time the collection was nearly zero and the GST said that compensation will be granted only if there is a collection. However, the Centre gave compensation even if there were no collections, he stated.

The goods and services tax (GST) was brought in and implemented on July 1, 2017. All the states were promised compensation for loss of revenue arising out of implementation of the new tax regime as per the GST (Compensation to States) Act, 2017 for a period of five years.

In response to a question on local body elections in the state and elsewhere, Bommai stated that the report of the Bruhat Bengaluru Mahanagara Palike Chief Commissioner on ward delimitation and reservation will be submitted to the Supreme Court on July 22. The process would be continued in accordance with the Supreme Court's order, he added.