Archive · 22 Aug 2025
Punjab Finance Minister Slams Centre Over GST Dues
Imagine the central government promised money to Punjab to help with a new tax system called GST.
Now, the state's finance minister says the central government still owes Punjab a lot of money – about 50,000 crore rupees from GST and another 8,000 crore rupees for rural development.
The minister says that this new tax system has actually cost Punjab a lot of money, around 1.11 lakh crore rupees.
He says the central government is hurting the state's finances and wants them to pay the money they owe right away.
He pointed out that even though the GST was supposed to make things simpler, it has caused issues.
Punjab's Finance Minister criticized the central government for withholding GST compensation.
Rs 50,000 crore in GST compensation and Rs 8,000 crore in Rural Development Fund (RDF) are pending.
The Finance Minister claims Punjab has suffered a Rs 1.11 lakh crore loss due to GST.
He accused the central government of wrecking state economies with GST.
He demanded the immediate release of Rs 60,000 crore owed to Punjab.
- Who
- Punjab Finance Minister Harpal Cheema
- What
- Punjab's Finance Minister criticized the central government for withholding GST compensation.
- When
- Thursday
- Where
- Delhi (GoM meeting)
- Why
- To address the withheld GST compensation and revenue losses due to the implementation of GST.
Punjab Finance Minister's Stance
Central Government's Stance
Impact of GST
Punjab Finance Minister's Stance
GST has caused significant revenue losses for Punjab.
Central Government's Stance
The central government has implemented GST to create uniform tax rates across the country.
- Pending GST Compensation
- Rs 50,000 crore
- Pending RDF
- Rs 8,000 crore
- Total Loss to Punjab (GST)
- Rs 1.11 lakh crore
- GST Implementation Year
- 2017
- Amendments to GST
- 27
- Funds demanded
- Rs 60,000 crore