In a major reprieve to the traders across the State, the Punjab Cabinet on Wednesday decided to exempt about 1.50 lakh cases from assessment related to cases of C form for the past years from 2014-15 to 2017-18. With this decision, taken during the Cabinet meeting, about 8,500 such cases would now be assessed under this category every year. This trader-friendly decision would cost Rs 200 crore on the State exchequer.

Forms Cs are used for filing returns against the tax already paid in interstate sale of goods.

To further boost trade and economic activity in the State, the Cabinet also gave approval to exempt the traders from making payment of 70 per cent of the excess demand and now they would be only required to deposit 30 per cent of the surplus demand. The decision would also cost the state exchequer to the tune of Rs 940 crore. Subsequently, they would now be required to deposit the said amount that is 20 per cent of the 30 per cent portion of the additional demand by March 31, 2022, and the remaining 80 per cent by March 31, 2023.

Notably, the has taken these significant decisions to facilitate traders in the wake of the recent Covid pandemic. Although it has been nearly four and a half years since the end of the VAT regime, there was still a heavy burden of VATassessment on the traders coupled with difficulties in providing C-forms etc to them.

The Cabinet also approved One-Time Settlement Policy-2021 for Punjab State Industrial Development Corporation Limited, Punjab Financial Corp and Punjab Agro Industries Corp for settlement of dues. The new policy will help resolve long-pending litigation and settlement between the corporations and the private investors, besides creating a more business-friendly Environment in the State.