The Government of Punjab, on May 29, 2026, issued a clarification regarding the computation and disbursement of Incentivized SGST under the Industrial & Business Development Policy (IBDP), 2017 and the Fiscal Incentives to Industrial Promotion Policy (FIIP(R)), 2013. The clarification provides guidance on the utilization of Input Tax Credit (ITC) for determining the eligible SGST incentive.
The notification clarifies that ITC available in the IGST credit ledger must first be utilized towards IGST liability, and any remaining balance shall be apportioned equally towards CGST and SGST liabilities. Further, the SGST incentive shall be restricted to the amount of SGST actually paid through the cash ledger. The incentive is available only in respect of eligible goods sold and consumed within Punjab, and the SGST deposited by the eligible unit must be certified by the competent authority of the Department of Excise & Taxation, Punjab.
Additionally, any excess benefits availed by a unit in earlier years shall be adjusted against current or future claims. The clarification is applicable solely for the purpose of computing Incentivized SGST under the aforesaid policies and does not affect GST compliance requirements under existing laws. The clarification has been issued with the approval of the Council of Ministers and shall be effective from the date of the respective policy notifications.
[Notification No. IND-INDU0ORDR/1/2026/E-1106937/1/1381340/2026]
