Punjab facing Rs 21,000-cr loss annually under GST regime, says FM Harpal Cheema

Finance Minister Harpal Singh Cheema has voiced concerns over the financial strain faced by the state under the goods and services tax (GST) regime. He said Punjab was incurring an annual revenue loss of Rs 21,000 crore.

The minister’s remarks come as the group of ministers (GoM), tasked with charting the future of the GST compensation cess, is yet to finalise an alternative taxation structure ahead of the cess’s scheduled end in March 2026.

“The state is losing Rs 21,000 crore annually under the GST regime, and the uncertainty over the compensation cess’s future is a pressing concern,” he said. Cheema noted that Punjab’s significant revenue shortfall under the GST regime had strained its fiscal health. He said the GST Council must act swiftly to address the surplus expected from cess collections, which is to be shared equally between the Centre and states.