GST: Great Shortfall Trouble – Ludhiana MC races to meet revenue goals

Ludhiana: As the fiscal year draws to a close, the Ludhiana Municipal Corporation has recovered nearly 76% of its revenue target but remains short of full collection, largely due to an incomplete goods and services tax (GST) share from the state govt.
Officials have ramped up recovery efforts, issuing notices, sending messages, and making phone calls to tax defaulters. Property tax remains the primary focus, with commercial properties, including newly built shop-cum-offices (SCOs) and markets, being targeted for overdue payments.
Commercial properties under scrutiny
Municipal corporation superintendent Vivek Verma said efforts had been concentrated on commercial establishments rather than residential properties. "Instead of spending time on residential dues, we focused on commercial properties, especially new SCOs (shop-cum-offices) and markets along South City Road. We have served notices to 20 such SCOs, and recovery has begun already," he said.
Paying guest accommodations and migrant quarters in areas such as Bhai Randhir Singh Nagar and Haibowal are also under review to ensure compliance with property tax regulations. Verma claimed that while the official property tax target was Rs 140 crore, the actual goal was Rs 163 crore, and officials remained hopeful of achieving it.
Additionally, authorities have issued notices to 160 liquor vends in Zone D, of which 145 have cleared their dues, leaving 15 still outstanding.
Challenges in tax collection
Municipal commissioner Aaditya Dachalwal stated that staff members have been directed to meet their targets by the end of March, and improvements in collection rates are already evident.
However, officials cite policy inconsistencies as a hurdle. Frequent announcements of settlement schemes disrupt tax recovery efforts, as many property owners delay payments, anticipating another one-time settlement (OTS) scheme. With bypoll elections expected in two months, officials say many defaulters are awaiting potential waivers.
The biggest defaulters remain residential property owners. Meanwhile, past policy decisions have compounded revenue challenges. The previous Congress-led government waived all pending water supply and sewerage dues, resulting in significant financial losses for the civic body.
Mayor Inderjit Kaur had also made an online appeal to taxpayers to clear their pending dues for the sake of development. She said that if residents wanted the MC to provide basic amenities, then they should pay their taxes. Property tax of Rs 160 crore is being proposed in next year's annual budget. This would be possible only if officials meet this year's targets.
With only weeks left in the fiscal year, Ludhiana's civic authorities remain under pressure to maximize tax recovery before March 31.