Chandigarh: The Punjab government on Thursday said it will "not favour" GST if the Centre did not ensure compensation of revenue loss of Rs 3,000 crore to the state after implementation of the indirect tax regime.
"Unless the Centre ensures that our revenue amounting to Rs 3,000 crore is protected (under GST), we will not be able to go for it (GST)," Punjab Finance Minister Parminder Singh Dhindsa said today.
The state government has expressed concerned over the loss of revenue to the tune of Rs 3,000 crore with the implementation of Goods and Services Tax (GST).
The cash-strapped government collects Rs 3,000 crore annually from purchase tax on food grain, rural development fund and infrastructure development cess.
Punjab government fears that the purchase tax, RDF and infrastructure development cess would be subsumed within the GST.
"We want from the Centre to keep purchase tax, RDF and infrastructure development cess out of the ambit of GST to protect the state's revenue," he said.
Asserting that Punjab was not against the basic concept of GST, Dhindsa said but the state should not suffer revenue loss at the cost of bringing change in indirect tax regime.
"We have categorically told the Centre that the protection of state's revenue is most important. No state should suffer loss with GST," Dhindsa said who today attended the meeting on GST in New Delhi.