Chandigarh: Punjab finance minister Harpal Singh Cheema has requested the central finance ministry to extend the goods and services tax (GST) compensation cess regime beyond Mar 31, 2026 to help the states mitigate revenue losses stemming from the integration of various taxes into the GST framework. Cheema raised this issue during a videoconference of the group of ministers (GoM) on compensation cess, emphasising that the GST Council, under the Goods and Services (Compensation to States) Act of 2017, has the authority to recommend extending the compensation period beyond five years. He pointed out to Punjab’s significant and permanent revenue losses due to the inclusion of the purchase tax on food grains, which was a vital revenue source before the implementation of the GST. He claimed that tax rates under the previous value-added tax (VAT) system were a lot higher than those under GST, leading to considerable revenue shortfalls for the state. Cheema said maintaining the GST compensation cess was essential to addressing these financial challenges and ensuring fiscal stability for states such as Punjab. The minister’s call aligns with concerns from multiple states. TNN