CHANDIGARH: The central government has again failed to release the Goods and Services Tax (GST) compensation to the Punjab government for October and November last year.
The Centre had to release the GST compensation for these two months by December 31, 2019. According to the GST Act, 2017, compensation to states and union territories with legislature is released on a bimonthly basis on account of revenue loss due to GST.
Earlier, the central government had released Rs 2,222 crore delayed GST compensation for August and September last year to the Punjab government on December 13, 2019.
Chief minister Amarinder Singh had on November 24 last year sought personal intervention of Prime Minister Narendra Modi and Union finance minister Nirmala Sitharaman for the release of GST component to state pending for August and September.
The state government claims that its poor collection of tax as well as non-tax revenue has brought the development works and governance almost to a halt.
The state government has recorded a downfall of over Rs 5,139 crore in collection of tax and non-tax revenue in first three quarters of the financial year 2019-20 as compared with the collection for the corresponding period in 2018-19. Punjab could hardly collect Rs 2,919 crore (30%) non-tax revenue till December 2019 of the estimated Rs 9,476 crore for 2019-20.
The Punjab Congress government had been under constant attack from the opposition parties for the poor management of finances and failure to generate revenue.
Haryana, however, has performed better till December 2019 in tax collection as well as non-tax revenue as compared with Punjab (see box).
Haryana’s non-tax revenue collection had remained at Rs 4,516 crore against its annual target of Rs 10,024 crore. At the same time, Haryana has collected Rs 37,714 crore as tax revenue (60%) of its annual budget estimate of Rs 62,321crore.
The Centre had to release the GST compensation for these two months by December 31, 2019. According to the GST Act, 2017, compensation to states and union territories with legislature is released on a bimonthly basis on account of revenue loss due to GST.
Earlier, the central government had released Rs 2,222 crore delayed GST compensation for August and September last year to the Punjab government on December 13, 2019.
Chief minister Amarinder Singh had on November 24 last year sought personal intervention of Prime Minister Narendra Modi and Union finance minister Nirmala Sitharaman for the release of GST component to state pending for August and September.
The state government claims that its poor collection of tax as well as non-tax revenue has brought the development works and governance almost to a halt.
The state government has recorded a downfall of over Rs 5,139 crore in collection of tax and non-tax revenue in first three quarters of the financial year 2019-20 as compared with the collection for the corresponding period in 2018-19. Punjab could hardly collect Rs 2,919 crore (30%) non-tax revenue till December 2019 of the estimated Rs 9,476 crore for 2019-20.
The Punjab Congress government had been under constant attack from the opposition parties for the poor management of finances and failure to generate revenue.
Haryana, however, has performed better till December 2019 in tax collection as well as non-tax revenue as compared with Punjab (see box).
Haryana’s non-tax revenue collection had remained at Rs 4,516 crore against its annual target of Rs 10,024 crore. At the same time, Haryana has collected Rs 37,714 crore as tax revenue (60%) of its annual budget estimate of Rs 62,321crore.
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