Punjab cabinet approves amendment to industrial policy

24 Feb '21

2 min read

Pic: Shutterstock

The Punjab state cabinet last week approved an amendment to the Industrial & Business Development Policy, 2017, for extension of the goods and services tax (GST) formula for availing incentives under the said policy till October 17 next year. This was reportedly done to promote post-COVID industrial revival and attract greater investment.

The move was also a result of feedback from several industry associations, who had demanded extension of the last date of claiming the GST incentive, given in the notification dated October 17, 2018, and make this last date as coterminous till the expiry of the Industrial Policy of the state.

The fiscal incentive under the present policy was only applicable for investment proposals received by March 31, 2020, on the Invest Punjab Business First Portal.

To avail the benefit of additional borrowing of 2 per cent of gross state domestic product (GSDP) in 2020-21, the state cabinet also gave approval to amend the Punjab Fiscal Responsibility and Budget Management (FRBM) Act, 2003, according to media reports from the state.

Notably, the central government has allowed 2 per cent of GSDP, of which 1 per cent shall be unconditional and remaining 1 per cent shall be conditional to specific reforms.

Fibre2Fashion News Desk (DS)

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