Traders and industrialists in the state are facing financial pressure amid prolonged delays in the release of GST refunds, with trade circles estimating that around Rs 1,500 crore remains outstanding. The figure, however, has not been officially verified. Traders demand the government issue a detailed statement on the status of pending refunds.
Traders say industrial units awaiting refunds since January and February are finding it increasingly difficult to manage day-to-day operations. They claim that ongoing international conflicts and supply-chain disruptions have pushed up the prices of dyes, chemicals and other raw materials by around 30–35 per cent.
The increase in input costs has raised production expenses and added to the working capital requirements of industrial units.
Businesses that do not receive eligible refunds on time are often compelled to borrow from banks to maintain operations, traders say. This adds to their interest burden and can make it more difficult to purchase raw materials, pay employees’ salaries and settle electricity bills on time.
President of the Textile Processors Association, said there was a need to establish accountability for delays in the release of eligible refunds.
“When a trader delays a payment due to the government, interest and penalties may be imposed. Why should the government’s accountability not also be established when eligible refunds owed to traders are delayed?” he said.
Traders have urged the Punjab Finance Minister to intervene and review all pending refund cases.
They have also urged the government to consider, subject to applicable legal and financial provisions, a special arrangement under which eligible pending GST refunds could be adjusted against electricity bills until the refunds are released in cash.
Source from: https://www.tribuneindia.com/news/amritsar/traders-seek-action-over-delayed-gst-refund/
