Chandigarh, Sept. 25 -- The Punjab government is bracing for challenges arising from the recent cut in the goods and services tax (GST) rates, particularly passing on the benefits to consumers and managing revenue loss to the state. Finance and taxation minister Harpal Singh Cheema said the biggest challenge of the GST overhaul would be to make sure that the benefits of the reduction in tax rates actually reach consumers. He said while automakers, white goods manufacturers and other large companies have announced rate revisions and selling at reduced rates, the role of retailers in their dealings with customers will be crucial in ensuring that price benefits on mass consumption products reach the lower middle class and other sections of society. Cheema said that special teams would be deployed to monitor price cuts under GST 2.0 and take action where benefits are not getting passed to consumers in the state. "We will be keeping a watch on price changes, and consumer complaints about prices will be addressed promptly. The 'Bil Liao, Inam Pao' (bring a bill, get a reward) scheme will also prove useful in verifying price cuts have been implemented," he told HT, highlighting the state government's preparedness to ensure compliance. The incentive-based scheme was launched in September 2023 to motivate consumers to obtain bills from dealers and retailers for their purchases and to strengthen tax compliance. The GST Council headed by Union finance minister Nirmala Sitharaman had on September 2 approved sweeping reforms, introducing a two-slab structure of 18% and 5% for most goods and services to rationalise rates, and simplifying compliances. The decision to slash rates on 375 items came into effect from September 22, the first day of "Navratri" and followed by record auto and e-commerce sales in the first 48 hours. The Central Board of Indirect Taxes and Customs (CBIC) has asked all its field offices to collect information from dealers and retailers on prices of goods to check whether they are passing the benefits. Another challenge for the Punjab government is the impact of the goods and services tax rate cuts on its revenue. Cheema said that the state is likely to witness a decline of roughly Rs.6,000 crore, about 20%, in its GST revenue due to the latest tweaks in the consumption tax rates. "This drop will severely impact the state's own tax revenues as we rely heavily on the GST. Our revenues were hit when the switch to the goods and services tax was made in 2017, and now again this time," he said. The GST has been the single largest contributor to the debt-ridden state's own tax collection. Of the own tax revenue of Rs.63,250 crore projected in the 2025-26 budget estimates, the state projected GST to contribute Rs.27,650 crore - about 44% from GST. The minister said that at the GST Council meeting, he had sought a five-year extension of the compensation cess, with 2024-25 as the base year, or some other alternative mechanism to compensate Punjab for revenue loss from the goods and services tax overhaul until fiscal stability is achieved. However, the request was not accepted....