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        Case ID :

        Himachal suffered losses after implementation of GST: CM Sukhu

        June 9, 2025

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        Shimla, June 9 (PTI) Himachal Pradesh has suffered losses after the implementation of the Goods and Service tax (GST) as the state with a population of 75 lakh, is not a consumer state, Chief Minister Sukhvinder Singh Sukhu said on Monday.

        Talking to PTI Videos here, he said that "there has been no advantage to us after GST as we are not a consumer state and states such as Uttar Pradesh, Bihar and West Bengal have benefitted from the GST." "Our population is 75 lakh and we have suffered losses following GST's implementation despite being the biggest pharma hub, there has been no benefit as far as industry is concerned. Earlier we used to get Rs 4,000 crore through value added tax (VAT) and excise duty and now we receive just Rs 150 crore from the GST", he said.

        Referring to the border tourism initiative, Sukhu said, "Shipki-La used to be a trade route in the olden days but trade was reduced after the 1962 war, and we felt that opening this route would give a boost to Border tourism. We spoke to the defence minister Rajnath Singh in this regard and are happy that the defence ministry gave permission", he said.

        The Border Tourism initiative, launched in coordination with the Union Government will enable regulated tourist access to strategically important yet culturally vibrant locations such as Lepcha-La, Shipki-La, Gue Monastery, Khana, Dumti, the Rani area of Sangla, and Chitkul in Kinnaur district, along with selected areas in Lahaul-Spiti.

        Access to these areas, which previously required special permissions from the ITBP and Indian Army due to their strategic locations and security, has now been eased under revised protocols and as per the new guidelines, local residents and bona-fide tourists can now visit these locations by presenting valid identity documents.

        The ITBP and Army will continue to facilitate smooth and secure movement in alignment with prescribed protocols. The initiative is expected to strengthen local infrastructure, enhance livelihood opportunities through responsible tourism, and foster a deeper sense of National integration for communities residing in remote tribal belts.

        "Punjab and Haryana are like our big brothers and when Bhakra dam was constructed, Himachal was a part of Punjab and the Union government gave the funds. However, the dams have come up on Himachal land and maximum oustees were Himachali but when we talk about their rights, Punjab and Haryana put hurdles and say they will not give anything", he said.

        "Anyaya bhi itna nahin karna Chaiye ke wo ek seema se bahar ho jaye" ("One should not do so much injustice that it crosses the limit"), he added.

        Lashing out at the BJP, he said that the opposition has the right to speak in democracy but it is better that the opposition plays a logical role.

        The BJP is divided into five factions in the state and all of them want to attack the CM on issues like samosa, murga and others, he said and added that they are not willing to talk on issues and come with us to meet the PM to raise matters like free royalty in electricity and 50 per cent share in projects that are free. PTI COR BPL MR MR

        GST revenue impact leaves non consumer states disadvantaged, prompting calls for equitable fiscal treatment and relief. The Goods and Services Tax has reduced Himachal Pradesh's state receipts relative to prior VAT and excise collections, creating a structural fiscal disadvantage for a non consumer state and prompting calls for equitable fiscal treatment. Concurrently, a Border Tourism initiative eases regulated tourist access to strategically sensitive areas in Kinnaur and Lahaul Spiti under revised ID based protocols while ITBP and Army continue to manage security and movement.
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.

                                GST revenue impact leaves non consumer states disadvantaged, prompting calls for equitable fiscal treatment and relief.

                                The Goods and Services Tax has reduced Himachal Pradesh's state receipts relative to prior VAT and excise collections, creating a structural fiscal disadvantage for a non consumer state and prompting calls for equitable fiscal treatment. Concurrently, a Border Tourism initiative eases regulated tourist access to strategically sensitive areas in Kinnaur and Lahaul Spiti under revised ID based protocols while ITBP and Army continue to manage security and movement.





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                                ActsIncome Tax
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