Punjab asks for More GST Reliefs before 2019 Elections

GST

The State Government of Punjab has asked the Central Government to grant more reliefs under the goods and services tax ( GST ) regime before the general elections.

The State has sought a comprehensive review of all exemptions under the GST while revising the threshold for such exclusions, signaling a possible shift in the political dynamics within the GST Council. In a letter to Union finance minister Arun Jaitley, Punjab finance minister Manpreet Badal also sought the inclusion of electricity, real estate, and petroleum products under the ambit of the new tax regime.

Originally, only essential items such as wheat, rice, and food grains were included in the exempted category, but the list expanded after many states sought the inclusion of mass consumption items in their states.

Also Read: GST Council’s Next Meeting on January

Making a strong pitch for a comprehensive review of all exemptions while revising the threshold, Badal said, “Most progressive regimes globally promote high thresholds for exemption but with few exemptions. Somehow we have started with low thresholds and subsequently have given a very large number of exemptions.” In his letter to Jaitley, the Punjab finance minister also said there should be a common composition limit for goods and services.

The State also sought reconstitution of the law review committee, in view of the upcoming general election, to look at the entire law holistically. “We should avoid the temptation of another knee-jerk reaction and work towards making our GST truly world-class,” said Badal.

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