E-Paper
Ludhiana: Industrialists seek release of GST refunds
The industrialists highlighted the challenges posed by the inverted duty structure, where raw materials fall under higher GST slabs of 18% or 28%, while finished products are taxed at lower rates of 5% or 12%
Industrial bodies in Punjab have collectively urged the state government to expedite the process to release the pending GST refunds, citing significant financial strain caused by delayed disbursements.
A meeting was held under the chairmanship of Gurmeet Singh Kular, president of the Federation of Industrial and Commercial Organization (FICO), along with Harsimerjit Singh Lucky, president of the United Cycle and Parts Manufacturers Association (UCPMA), Narinder Bhambra, president of the Fasteners Manufacturers Association of India, Satnam Singh Makkar, president of the Dhandari Industrial Welfare Association, and Charanjit Singh Vishavkarma, chairman of the Federation of MSME Manufacturers.
The industrialists highlighted the challenges posed by the inverted duty structure, where raw materials fall under higher GST slabs of 18% or 28%, while finished products are taxed at lower rates of 5% or 12%. This discrepancy results in refunds being withheld, creating a working capital deficit for industries.
In a joint statement, the leaders expressed concern over the financial burden on businesses. According to Kular the pending GST refunds are not a grant or subsidy, it is the industry’s own money. The delay is causing significant working capital shortages, forcing businesses to rely heavily on bank credit limits and incur higher interest costs.
Manjinder Singh Sachdeva, general secretary FICO, emphasised that the prolonged delays are hampering business operations and growth. They appealed to the Punjab government and GST officials to prioritise the release of pending refunds to alleviate the financial challenges faced by industries.
