Punjab cabinet at its meeting chaired by chief minister Amarinder Singh approved an amendment to the GST incentives notified under its Industrial and Business Development Policy-2017.
“I find that the process adopted for the finalization of GST law is not proper and thus impinge on the states’ right of proper representation before taking up such important legislation in their respective legislatures,” Punjab finance minister Manpreet Badal wrote in a letter to stand-in Union finance minister Piyush Goyal.
Punjab Chief Minister Amarinder Singh has also written to Prime Minister Narendra Modi on the same issue.
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The recent amendment enables industrial units to choose between net GST incentives or incentivized SGST (state GST) on intra-state sale.
The amendment considers, certain units which have filed their common application form on the Invest Punjab Business First Portal within the period of one year beginning from 17 Oct 2017 to 17th Oct 2018, inclusive of both the days and facilitate them with a single time option to choose between the two:
- Net GST incentive as per department notification issued on October 17, 2018.
- Incentivised SGST on the intra-state scale.
The single time option is valid to be exercised within the period of 90 days beginning from the date of the notification.
Incentivised SGST on intra-state scale states that the eligible unit will be qualified to claim the reimbursement of SGST amount paid as the output liability of the SGST on selling the verified products when the payment is made through cash ledger.
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For this, the eligible unit will first have to utilize all eligible ITC present in its cash ledger present on the common portal.
The GST ITC as per section 49 of the Punjab Goods and Services Act,2017 will be eligible before the amount of SGST.
The industries urged for some alterations in the net SGST incentives under the original notification issued on October 17, 2017. Cabinet finalized and declared the new SGST formula for incentive in the new industrial policy 2017 on 17th October 2018.
