Punjab Finance Minister Advocates Key GST Reforms and Exemptions

Punjab Finance Minister Harpal Singh Cheema sought GST compensation and advocated several reforms during the 54th GST Council meeting. Key points included exempting research grants from GST, revising the reverse charge mechanism on metal scrap, and addressing negative balances in IGST ledger. Punjab also welcomed the establishment of GST appellate tribunals.

During the recently concluded GST Council meeting, Punjab Finance Minister Harpal Singh Cheema pressed for GST compensation to counteract the state's reduced taxation rate since GST implementation.

Cheema highlighted the need for compensating states with low GST revenue and advocated for research grants to be exempt from GST, emphasizing Punjab's prioritization of education.

Cheema further recommended re-examining the reverse charge mechanism for metal scrap and suggested reducing the rate to 5 percent, while also advocating for lower GST on health and term insurance premiums.