Punjab Gets Rs 3,670 Crore GST Compensation from Centre

Chandigarh, November 28: Punjab Finance Minister Harpal Singh Cheema informed the House on Tuesday that the state government has received Rs 3,670 crore of Goods and Services Tax (GST) compensation from the Centre after it lodged a new claim of Rs 5,005 crore with it.

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Fresh Claim of Rs 5,005 Crore

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 assembly, Cheema said the state government lodged the new claim of GST compensation worth Rs 5,005 crore with the Centre. Out of which Rs 3,670 crore has come to the state exchequer, Cheema informed the House.

Excess Disbursement of Rs 3,900 Crore

The FM also said the previous Congress government did not present the proper record before the Centre, after which the Government of India told the state government that an excess amount of Rs 3,900 crore of the GST compensation had been disbursed to Punjab. "I am sharing for the first time that they (the Centre) sought return of excess disbursement. Then we checked our records. We not only got the Centre's claim of Rs 3,900 crore rejected but also lodged the fresh claim of Rs 5,005 crore," said Cheema.

Action Against Fake Bill Issuers

The FM said his department found 800 people indulging in issuing fake bills and said action will be taken against them. The department managed to discover issuing of fake bills through the scheme Bill Leyao, Inaam Pao (Bring a bill, Get reward), which is aimed to check theft of tax revenue by unscrupulous traders and shopkeepers.

Punjab Assembly Passes Two Bills

Meanwhile, the Punjab Assembly passed 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 way for setting up a GST Appellate Tribunal and imposition of GST on online gaming, the second Bill is related to aligning fiscal deficit, revenue deficit and outstanding debt as percentage of the GSDP in that particular year, as recommended by the Central Finance Commission and approved by the Centre.

Benefits of GST Amendment Bill

While presenting the Punjab GST Amendment Bill, 2023, Cheema said he accepted the suggestion of AAP MLA Budh Ram who said the share of GST collection should come to Punjab if a person hailing from the state buys anything in another state.

Chief Minister Bhagwant Mann's Statement

Earlier, Chief Minister Bhagwant Mann said the GST Bill presented in the House will go a long way in ensuring that the benefits of the tax are given to the manufacturing state, which has used its resources to produce goods. He also said the state government has already launched a one-time settlement scheme for value added tax to benefit more than 65,000 traders across the state.

Use of Artificial Intelligence (AI) in GST Collection

Mann said the state government is introducing the Artificial Intelligence (AI) in GST collection to check bogus billing. He said similarly the AI is also being introduced in departments like revenue, health, agriculture, and others.

Benefits of AI

Citing benefits of the technique, Mann said due to its usage the state government saved Rs 163.26 crore merely in estimates of road, adding that 540 km of roads that do not exist have also been detected. He said the state government is spending the money collected from people for their benefit only.

State Government's Spending

He said people's money is being spent on giving them free power, free medicines in Aam Aadmi Clinics, free education and others. There is no dearth of funds with the state government and every penny will be spent for the welfare of the general public, he said.