Punjab volunteers for pilot project on Business-to-Consumer e-invoicing to increase tax compliance
Punjab Newsline, Chandigarh, September 11-
Punjab Cabinet Minister Advocate Harpal Singh Cheema has apprised the GST Council that state's effective taxation rate has significantly decreased since GST implementation, therefore considering the low GST Revenue, the Council must look at ways to compensate states that are losing revenue due to the implementation of GST. He also passionately advocated for exempting research grants from GST net, emphasizing education as a top priority for the Punjab Government.
In a press release summarizing the 54th GST Council meeting, the Excise department's official spokesperson revealed that Finance Minister Harpal Singh Cheema informed the council that as tax rates under GST regime are no longer under state control, Punjab cannot offset losses resulting from change in tax system. Furthermore, since Punjab's industries manufacture goods consumed in other states, the state receives lower IGST settlements. Given the low GST revenue, Minister Cheema urged the council to explore ways to compensate states losing revenue due to GST implementation. The GST Council acknowledged his suggestion and assured prompt action.