Punjab Finance Minister Harpal Singh Cheema on Tuesday sought the intervention of Finance Minister Nirmala Sitharaman in taking into account the reversal of input tax credit by taxpayers registered within the state for integrated goods and services tax (IGST) settlement.
In a letter to the Union Finance Minister, Cheema said it has been observed that although taxpayers registered within the state have carried out the reversal of a huge amount of ITC the same has not been considered for the IGST settlement.
"Particular instance has been identified of M/s HPCL Mittal Energy Limited which has reversed ITC to the tune of Rs 223 crore in the financial year 2018-19, Rs 230 crore in FY 2019-20, and Rs 227 crore in the financial year 2020-21 respectively”, said Cheema.
He further informed that the said amount has not been taken into account while undertaking the process of IGST settlement for the said period thereby depriving the state of its rightful share of the revenue.
"I have been informed that this issue has been consistently and constantly raised by my officers with the Government of India but no solution has emerged till now,” said Cheema. Referring to the grave importance of the issue for the revenue of the state, Cheema urged the Union Minister that her personal intervention is of much importance for the resolution of this matter as early as possible.
He said the significance of this issue resonates more strongly in light of the expiry of the GST compensation regime
