The cabinet of Punjab Government has approved the amendment to the Goods and Services Tax Act to grant GST incentives its Industrial and Business Development Policy-2017 to enable industrial units to choose between net GST incentives or incentivised SGST (state GST) on intra-state sale.
The cabinet headed by the chief minister Amarinder Singh decided that the amendment would allow the 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), to have a one-time option to opt either for net GST incentives as per department notification issued on October 17, 2018, or incentivised SGST on intra-state sale. Such units shall be allowed to exercise this option within 90 days from the date of the notification.
Under the policy, the eligible unit will be entitled to get reimbursement of SGST amount paid through a cash ledger against the output liability of the SGST on sale of eligible products.
The eligible unit shall first have to utilise all eligible income tax credit (ITC) available in its credit ledger maintained on the common portal, including eligible ITC of GST 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 a cash ledger.
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 the net SGST incentive in line with the original notification issued on October 17, 2017.
