Rs. 3,670 Crore GST Compensation claim given to Punjab: FM Cheema

The Punjab Finance Minister Harpal Singh Cheema informed the House on Tuesday that the state government has received Rs.3,670 crore in Goods and Services Tax (GST) compensation from the Centre after filing a revised claim of Rs.5,005 crore.

Cheema stated that the state administration made a fresh claim of GST compensation worth Rs.5,005 crore with the Centre after tabling the Punjab Fiscal Responsibility and Budget Management (Amendment) Bill, 2023 in the House on the first day of the two-day winter session of the legislature.

“Out of which Rs.3,670 crore has come to the state exchequer,” Cheema informed the House.

The FM further stated that the previous Congress administration failed to give the right record to the Centre, as a result of which the administration of India informed the state government that an excess amount of Rs.3,900 crore in GST compensation had been disbursed to Punjab.

“I am disclosing for the first time that they (the Centre) requested the return of excess disbursement. We then double-checked our records. We not only had the Centre’s claim of Rs.3,900 crore rejected, but we also filed a new claim of Rs.5,005 crore,” Cheema explained.

The FM stated that his agency discovered 800 persons issuing fraudulent invoices and that action will be taken against them. The government discovered the issue of bogus bills through the ‘Bill Leyao, Inaam Pao’ (Bring a bill, Get a prize) campaign, which aims to prevent tax revenue theft by unscrupulous dealers and shops. In the meanwhile, the Punjab Assembly approved two bills: the Punjab Goods and Services Tax (Amendment) Bill, 2023, and the Punjab Fiscal Responsibility and Budget Management (Amendment) Bill.

While the first Bill will pave the way for the establishment of a GST Appellate Tribunal and the imposition of GST on online gaming, the second Bill is concerned with aligning fiscal deficit, revenue deficit, and outstanding debt as a percentage of GSDP in that specific year, as recommended by the Central Finance Commission and approved by the Centre.

Cheema stated during the presentation of the Punjab GST (Amendment) Bill, 2023, that he welcomed AAP MLA Budh Ram’s recommendation that the portion of GST collected should go to Punjab if a person from the state purchases anything in another state.

Earlier, Chief Minister Bhagwant Mann stated that the GST Bill introduced in the House will go a long way toward ensuring that the advantages of the tax are distributed to the manufacturing states, which have used their resources to produce goods.

He further stated that the state government has already established a one-time value added tax settlement mechanism that will assist more than 65,000 businesses across the state.

Mann stated that the state government has received 1,800 applications under the plan, which has received overwhelming support from the general people. He stated that the state is implementing Artificial Intelligence (AI) in GST collection to combat fake billing. Similarly, he stated that AI is being implemented in departments such as revenue, health, agriculture, and others.

Mann cited the technique’s benefits, claiming that its use saved the state government 163.26 crore in road estimates alone, while also detecting 540 km of roads that did not exist. He stated that the money obtained from the people is spent only for their benefit. He said that people’s money is being spent on providing them with free electricity, free medications in Aam Aadmi Clinics, free education, and other benefits.

The state government has no shortage of finances, he continued, and every penny would be used for the general public’s benefit.