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Karnataka CM seeks extension of GST compensation till 2025
New Delhi/Bengaluru, Dec 27 (IANS) Karnataka wants the Central government to extend compensation of the Goods and Services Tax (GST) to the state till 2025 from 2022 as stipulated, said Chief Minister H.D. Kumaraswamy on Thursday.
“Kumaraswamy asked Union Finance Minister Arun Jaitley in New Delhi to extend the GST compensation to the state till 2025 from 2022, as revenue deficit against protected revenue may continue,” said the Chief Minister’s Office (CMO) in a statement in Bengaluru after their meeting in New Delhi.
As an indirect tax regime, GST was introduced on July 1, 2017 across the country in lieu of various levies like central sales tax, commercial tax, value added tax and octroi for transfer of goods through inter-state goods transport.
“Compensation to the state for the first 5 years, as envisaged in the GST Act, will limit fund allocation to various welfare schemes for the people and infrastructure projects in the state,” said the CM0 statement.
Although GST collection in the southern state has improved in fiscal 2018-19 over the previous fiscal (2017-18), the gap between actual and protected revenues is substantial and may continue beyond 2022.
Apprising Jaitley of the situation in Karnataka, the Chief Minister said the state’s revenue from indirect taxes like VAT grew 10-12 per cent annually.
“Post-GST, the state has 20 per cent revenue deficit as against its protected revenue since the new tax regime since July 2017,” said the statement.
While Karnataka is making efforts to minimise revenue leak, the state has cited structural reasons for the revenue deficit from the present GST rates and due to lower contribution by the services sector.
“As the state government has social schemes and infrastructural projects to improve the quality of life of its people, the Chief Minister sought extension of the compensation tenure by another 3 years,” it added.
According to the state Finance Ministry sources, Karnataka received Rs 7,535 crore as compensation for fiscal 2017-18, one of the highest among the states.
After the compensation extension figured in the December 22 meeting of the GST Council, Jaitley in a blog on Monday admitted that the GST targets were steep for the states to achieve.
“The targets set for the states in the GST regime are high. Even though GST commenced on July 1, 2017, the base year for revenue increase calculated is 2015-16. For each year, a 14 per cent increase is guaranteed,” said Jaitley in the blog.
With three 14 per cent increases compounded annually over the base year (2015-16), which is closer to a 50 per cent being reached in the second year, it is almost an unachievable target.
As many states struggle to achieve the collection targets, the Central government has been mulling extending the compensation period against the revenue loss by three more years from 2022.
–IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.
Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.
During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.
On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”
Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.
It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.
Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.
Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”
On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”
The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.