Industry to get More Flexibility in Payment of Taxes

CHANDIGARH, MARCH 6: In another significant move to boost industrial development in the state, the Punjab Cabinet on Wednesday approved an amendment to the GST incentives notified under the Industrial and Business Development Policy 2017, to enable industrial units to choose between Net GST incentives or incentivized SGST on intra state sale.

 The cabinet, at its meeting chaired by Chief Minister Captain Amarinder Singh, decided that the amendment would allow units which have filed their common application form on the Invest Punjab Business First portal between October 17, 2017 and October 17, 2018 (both days inclusive) would have the one-time option to opt either for Net GST incentives as per department notification issued on 17-10-2018 or incentivized SGST on intra state sale. Such units shall be allowed to exercise this option within 90 days from the date of the notification.

The incentivized SGST to be considered for reimbursement would mean that the eligible unit will be entitled to get reimbursement of SGST amount paid through cash ledger against the output liability of SGST on sale of eligible products. The eligible unit shall first have to utilize all the eligible ITC available in its Credit Ledger maintained on the common portal, including eligible ITC of IGST as provided under section 49 of the Punjab Goods & Services Tax Act, 2017 as may be amended from time to time, before adjusting the SGST amount through Cash Ledger.  

It may be recalled that the net SGST formula for incentive announced in the new Industrial Policy 2017 was approved by the Cabinet during its earlier meeting on October 17, 2018. However, feedback and suggestions were received from industry, which wanted a change in net STST incentive in line with the original notification issued on October 17, 2017.