GST collection in Punjab has impacted significantly because of the continuous decrement in industrial and business filings for the last two decades. The data figures of GST collection in last five months bring out the actual economic downturn situation in Punjab. Within five months of GST implementation, the tax department has collected nearly Rs 5296 crores as GST in Punjab state, which is about four times shorter than the GST collected by Haryana during the same term, which is close to Rs. 19894 crores.
Haryana secures the second position in terms of GST collection from state-manufactured goods across the country whereas Maharashtra holds the first position. The speciality of the GST system lies in the fact that more tax collection might not be necessarily more beneficial to the tax collector. A particular state will receive only a share of the total GST collected on its goods, depending on exactly how many of those goods were actually consumed in that state. Due to this, even if a small state manages to collect more GST, it doesn’t necessarily get high enough benefit accordingly.
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A separate cell for the capital investment was formulated by the government of Punjab. According to the official sources, however, none of the major investors is yet eager to work in the state merely on the basis of trust. There is also news that due to the poor behaviour of the Punjab government, even Canada has backed from its plans of investing in Information technology, human resources development, and environment industries of the state.