E-Paper
Ludhiana: Industry body seeks seven-day GST refunds
Representing CICU, Sarvjit Singh, co-convenor of its export committee, and Vinod Kumar from the administration submitted a memorandum to Mangal, highlighting the difficulties faced by manufacturers due to delayed refunds and the accumulation of input tax credit
Prefer HTon Google
The Chamber of Industrial and Commercial Undertakings (CICU) has sought a seven-day deadline for processing and releasing eligible GST refunds, along with rationalisation of inverted duty structures, to ease working capital constraints and reduce the financial burden on manufacturing units, particularly micro, small and medium enterprises (MSMEs).
The demands were raised during an interactive session organised by the CGST, Chandigarh Zone, on the key outcomes of the 57th GST Council meeting. CBIC chairman Vivek Chaturvedi, member (GST) Sanjay Mangal and senior departmental officials attended the session.
Representing CICU, Sarvjit Singh, co-convenor of its export committee, and Vinod Kumar from the administration submitted a memorandum to Mangal, highlighting the difficulties faced by manufacturers due to delayed refunds and the accumulation of input tax credit (ITC).
The Chamber said sectors such as bicycles and components, engineering goods, packaging, tractor parts and sewing machines faced inverted duty structures, under which raw materials attract higher GST rates than finished products. This results in accumulated ITC and funds remaining locked in the tax system, restricting manufacturers’ ability to purchase raw materials, pay wages and meet other operational expenses.
CICU cautioned that higher borrowing costs and tax-related disadvantages could make imported finished goods more attractive than domestically manufactured products, potentially affecting investment and employment and undermining the Centre’s Make in India and Atmanirbhar Bharat initiatives.
Among its key recommendations, the Chamber proposed a seven-day processing and release deadline for eligible refunds claimed by established, low-risk taxpayers, wherever legally feasible. It also called for an artificial intelligence-enabled automated refund mechanism, sector-wise GST rate rationalisation and uniform refund procedures across central and state tax administrations.
The Chamber also flagged professional charges ranging from 5% to 10% of refund amounts in some cases, describing them as an additional financial burden on businesses. It sought timely GST audits, protection for bona fide purchasers in ITC-related matters and stronger safeguards for taxpayer data confidentiality.
Welcoming the 57th GST Council’s initiatives towards automated refunds, CICU expressed hope that the proposed reforms would translate into tangible relief for manufacturers.
CICU president Upkar Singh Ahuja said timely refunds and transparent tax procedures were essential to strengthening India’s manufacturing competitiveness.
Chaturvedi took note of the suggestions and assured the industry representatives that their concerns would be taken up with priority at the appropriate level.
