Punjab to seek extension of GST compensation

The Punjab government has decided to take up the issues of GST compensation, exclusion of state from the MSP committee, crop diversification, model schools, and civic amenities in the meeting.

3 min readChandigarhAug 6, 2022 03:37 AM IST

With their being no official notification on ending the GDT compensation, the Punjab government hopes that it has a window to press upon the Centre. (Representational Image)

WITH Punjab reeling under debt, Chief Minister Bhagwant Mann is likely to seek an extension of GST compensation regime during the seventh governing council meet of NITI Aayog on Sunday. The meeting, the first in person after the Covid pandemic, will be chaired by Prime Minister Narendra Modi.

The Punjab government has decided to take up the issues of GST compensation, exclusion of state from the MSP committee, crop diversification, model schools, and civic amenities in the meeting.

Punjab has been getting Rs 16,000 crore from Centre as GST compensation every year. With the GST regime coming to an end in June, Punjab will receive a compensation of Rs 4,000 crore for the first quarter. It will be difficult for the state to sustain without the compensation. Sources in the government said that the CM would seek that the compensation regime should be extended.

The government has already rolled out doles like free power and subsidised power. Its power subsidy bill alone may cross Rs 19,000 crore this fiscal.

With their being no official notification on ending the GDT compensation, the Punjab government hopes that it has a window to press upon the Centre.

As the governing council meeting would deliberate on agriculture, education and economy, Punjab government, it is learnt, is preparing to express condemnation for the Centre not giving representation to Punjab in the MSP panel, set up after the withdrawal of farm laws. The CM has already slammed the Centre for not making Punjab part of the panel. Mann had tweeted, “Punjab’s farmers are already stuck in crop cycle and debt. MSP is our legal right… The Centre should ensure representation of Punjab in the MSP committee,” he had earlier said.

The Centre had formed a committee on MSP to look into ways to make MSP available to farmers by making the system more effective and transparent. Besides MSP, the committee will look into ways to promote natural farming, crop diversification, and micro-irrigation schemes.

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Among others, senior members of agricultural universities, five central government secretaries and chief secretaries of Karnataka, Andhra Pradesh, Sikkim and Odisha are part of the panel.

“The CM is also going to seek Centre’s help in diversification and management of paddy stubble. We have already announced purchase of moong on MSP and Rs 1500 per acre bonus for Direct Sowing of Rice (DSR). The CM will present this initiative of the government in the meeting seeking centre’s help also in such initiative so that Punjab’s agriculture could be saved of challenges and the state from desertification as our underground water aquifers are drying up,” a functionary said.
The CM would also take up the issue of model schools that are being set up in the state.

Kanchan Vasdev

Kanchan Vasdev is a Senior Assistant Editor in The Indian Express’ Punjab bureau. She is a highly experienced journalist with 22 years of expertise covering high-stakes politics, governance, and social issues in Northern India. Professional Background Role: Primary reporter covering the Punjab Chief Minister’s Office (CMO), government policies, and the Aam Aadmi Party (AAP) leadership in the state. Experience: She previously worked with The Tribune and has played a key role in launching various city editions. Special Projects: Abandoned Brides: Authored a monograph on brides abandoned by NRIs as part of the Prabha Dutt Memorial Fellowship. Environment: Worked as a Centre for Science and Environment (CSE) fellow, focusing on the pollution levels in the Satluj river. Recent Notable Articles (Late 2025) Her recent reporting focuses on the legislative strategies and political maneuvers of the Bhagwant Mann-led Punjab government: 1. Legislative & Governance Standoffs "Punjab govt advances special Assembly session to pass resolution against VB-G RAM G Bill" (Dec 20, 2025): Reporting on the state's move to block the Centre's "Viksit Bharat" mission, which the state claims will undermine MGNREGA. "Punjab govt doubles down on special sessions, sixth in January" (Dec 19, 2025): Detailing the AAP government's use of special sessions as a legislative tool amid tensions with the Governor. "Punjab asks 'VIP teachers' working near Chandigarh to go back to border districts" (Dec 16, 2025): Reporting on CM Mann's move to end the practice of influential teachers avoiding postings in remote areas. 2. Political Analysis & Rural Polls "Punjab rural polls: Why Akalis are likened to dinosaurs in Punjab" (Dec 19, 2025): Analyzing CM Bhagwant Mann's rhetoric against the Shiromani Akali Dal (SAD) following local body elections. "AAP claims win in 78% Punjab zila parishads as counting continues" (Dec 18, 2025): Breaking down the results of the 2025 rural elections. "Rahul Gandhi and Sidhu alike, says Bhagwant Mann" (Dec 13, 2025): Covering the CM's critique of the Congress leadership. 3. Law Enforcement & Bureaucracy "Suspended Punjab IPS officer Ravjot Kaur Grewal awaits reinstatement" (Dec 10, 2025): Investigative reporting on the bureaucratic red tape involving the Election Commission and the state government. "Punjab declines to give parole to Amritpal Singh" (Nov 27, 2025): Detailing the state government's refusal to grant parole to the radical preacher and sitting MP. 4. Welfare & Economy "Punjab government's plan to add more freebies to 'atta-dal' scheme hits funds roadblock" (Dec 4, 2024): An analysis of the fiscal challenges facing the state's flagship food security program. "Mann leads Punjab delegation to Japan and South Korea for investor outreach" (Dec 2, 2025). Signature Beat Kanchan Vasdev is known for her insider access to Punjab's political executive. Her writing provides deep insights into how state policies are formulated and the friction points between the state government and central authorities. Her dual expertise in environment and law allows her to report on complex issues like the "Farmhouse Policy" (Dec 18, 2025) and river pollution with a unique policy-oriented lens. X (Twitter): @kanchan99 ... Read More

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