Industrial bodies have warned that they will begin a strike from January 15 if the government fails to release pending GST refunds.
At a meeting held under the leadership of; chairman of the United Cycle and Parts Manufacturers Association, along with president of Federation of Industrial and Commercial Organisation, representatives demanded immediate release of refunds stuck due to the inverted duty structure.
In a joint statement, they pointed out that finished products such as bicycles, sewing machines and agricultural implements fall under the 5 per cent GST slab while raw materials are taxed at 18 per cent. The mismatch leads to accumulation of refunds with the government.
“It’s industry’s own money,” they said, adding that the delay had created a working capital deficit, forcing units to overuse bank limits and pay higher interest.
They said the refunds had been pending for the past six months and must be released without further delay.
“The government should intervene in the matter and direct the officials concerned to ensure that refunds were released automatically once returns are filed. The money is neither a grant nor a subsidy — it belongs to the industry and should be returned at the earliest,” he said.
They cautioned that if the refunds were not provided soon, the industry would intensify its struggle against the government and begin a strike from January 15.
Source from: https://www.tribuneindia.com/news/ludhiana/industry-warns-of-strike-from-jan-15-if-gst-refunds-not-released/
