Punjab likely to lose Rs 15k crore as GST compensation ends
Chandigarh, June 29: The GST council's two-day brainstorming session, which began on Tuesday in Chandigarh, comes as a matter of worry to fund-starved states like Punjab.
Punjab, Uttarakhand, Nagaland and Puducherry are the states with the highest revenue shortfall. Meanwhile, the GST compensation cess comes to an end on Thursday (June 30).
However, many states like Punjab have seen a minor improvement in the GST revenue shortfall. The shortfall, which was 57.7 percent in the last fiscal year, has reduced to 48.8 percent in the current financial year.
Furthermore, the Punjab Government has estimated that the end of the GST Cess will result in a loss of between Rs 14,000 to Rs 15,000 crore during the current fiscal year 2022-23.
Also Read | Udaipur beheading incident: Section 144 imposed across Rajasthan for one month; probe on
Meanwhile, the AAP-led Punjab government in its new budget has not proposed any fresh taxes. With a debt gross state domestic product (GDDP) ratio of 45 percent at the end of the previous fiscal year, the state is among the most indebted in the country. The Punjab government's outstanding liabilities have reached 2.9 lakh crores in 2021-22.
The Goods and Services Tax (GST) was implemented on July 1, 2017, and states were guaranteed compensation for revenue losses caused by the GST rollout until June 2022.
Also Read | Unbranded packet food to attract GST
-PTC News
