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Published 16:32 IST, December 2nd 2019

Punjab to have GST in line with the Central GST; CM eyes ease of doing business

Amarinder Singh on Monday said that The Punjab Goods and Services Tax (Amendment) Act, 2017 is all set to be suitably amended, in line with Central GST Act

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Punjab Chief Minister Captain Amarinder Singh on Monday said that The Punjab Goods and Services Tax (Amendment) Act, 2017 is all set to be suitably amended, in line with the Central GST Act, to further promote ease of business in the state.

The State Cabinet, at its meeting chaired by Chief Minister Captain Amarinder Singh, on Monday approved the Punjab Goods and Services Tax Ordinance, 2019, to make amendments in accordance with those made to the Central Goods and Services Tax Act, 2017, of which it was a replica, vide Finance (No.2) Bill, 2019. 

Various amendments were recommended in provisions of CGST Act, 2017

Disclosing this, an official spokesperson, however, made it clear that the wording of Section 39, 44, 52, 53-A and 101-A has to be kept different in PGST Act, 2017, from the relevant sections of CGST Act, 2017. Further, amendment in Section 168 which has been made in the CGST Act, 2017 is not required to be made in State Goods and Services Tax (SGST) Act, 2017. It may be recalled that the GST Council, in its 35th meeting held on June 21, 2019, had recommended various amendments in the provisions of Central Goods and Services Tax Act, 2017.

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The same was incorporated in the Finance (No. 2) Bill, 2019, and received the Presidential Assent on August 1, 2019. Similar amendments need to be carried out in the Punjab Goods and Services Tax Act, 2017, in order to safeguard the interests of taxpayers and promote hassle-free business. The Ordinance approved on Monday by the state cabinet provides for an alternative composition scheme for the supplier of services or mixed suppliers (not eligible for the earlier composition scheme), having an annual turnover in the preceding financial year up to Rs. 50 lakhs.

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The amendment will also empower the PGST Commissioner

It further provides for higher threshold exemption limit from Rs. 25 lakhs, to such amount not exceeding Rs. 40 lakhs, in case of a supplier who is engaged exclusively in the supply of goods. It also provides for furnishing of annual returns and for quarterly payment of tax by a taxpayer who opts for composition levy, as well as mandatory Aadhaar submission or authentication for persons who intend to take or have taken registration. The amendment will also empower the PGST Commissioner to extend the due date for furnishing Annual return and reconciliation statement. It will give taxpayers the facility to transfer an amount from one head to another in the electronic cash ledger, among other benefits.

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Updated 18:11 IST, December 2nd 2019