Punjab FM Harpal Cheema asks Centre to release Rs 50,000-crore GST loss relief

Finance Minister Harpal Cheema has asked the Central Government to immediately release compensation of Rs 50,000 crore to Punjab for losses suffered following the implementation of Goods and Services Tax (GST).

After participating in a two-day meeting of the GST Ministerial Group on health and insurance, rationalising rates and compensation cess, Cheema said since the implementation of GST in 2017, the state has incurred a financial loss of Rs 1,11,045 crore. He added that while the Centre had already paid Rs 60,000 crore as compensation, it was yet to release Rs 50,000 crore.

The Centre had announced a five-year compensation package to states in lieu of financial losses incurred due to GST implementation.

He said besides, the Centre had also withheld Rs 8,000 crore of rural development funds and over Rs 1,000 crore under the Prime Minister’s Road Scheme.