The Punjab Government on Wednesday decided to amend the industrial policy to give investment incentives by way of Net SGST on intrastate sales to promote business enterprises in the State.
The State Cabinet meeting, chaired by Chief Minister Amarinder Singh, also approved global tendering for the upcoming hi-tech cycle valley on a 100-acre industrial park in Ludhiana, an official statement said here.
The Cabinet noted that since the Government could not give direct concessions to industry in matters of land acquisition, other incentives should be provided through amendment to the policy so that both the state and the industry get the best deal through measures such as global tendering.
The Cabinet observed that for effective implementation of the policy there was need to explicitly define and explain the term ‘Net SGST Incentive’.
A series of meetings/consultations were held among departments of Excise and Taxation, Finance, Industries and Commerce and Investment Promotion, the statement said.
After deliberations, a detailed formula for different eventualities was finalized in the meeting under the chairmanship of the Finance Minister.
According to the new formula, incentive amount would be calculated based on output IGST (or CGST+SGST), that would be called GST rate for formula, the statement said.
Overall quantum and/or period for claim of incentives shall remain same as defined in IBDP-2017 (as amended from time to time) for the respective category.
Availing of incentives up to the overall ceiling i.E. 200 per cent/125 per cent/100 per cent of FCI, as applicable, shall depend on the capacity utilization of the unit during the eligibility period, the statement said.
The incentive under the present policy would only be applicable for such investment proposals where Common Application Form has been submitted by March 31, 2020.