In a significant move to bolster tax compliance, the Punjab government has volunteered to participate in a pilot project for business-to-consumer (B2C) e-invoicing. The proposal, aimed at enhancing GST collections and reducing tax evasion, was introduced during the 54th GST Council meeting on Monday. Punjab Finance Minister Harpal Singh Cheema confirmed the state's commitment to the project on Wednesday.
The other agenda that was debated during the meeting was related to the creation of the GST Appellate Tribunals. Punjab is likely to set up its chief seat at Chandigarh while another seat at Jalandhar. He said that the proposal to change the location of the principal bench and additional sitting bench had been accepted.
Cheema also raised issues of declining GST revenue since the onset of the system, for the state in question. He encouraged the Council to search for the means to restore the revenues of states most affected by the implementation of the GST.
The minister further advocated for exempting research grants from GST, highlighting that education remains a top priority for the Punjab government. He emphasized that the current tax rates under GST are no longer within state control, making it essential for the Council to address the unique challenges faced by states like Punjab.
Benchmarking this e-invoicing project that the state is to embark on, many expect it to have improved the tax compliance and transparency in the business to consumer segment.
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