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Ludhiana: Industry body urges state govt to clear pending GST, VAT refunds
FICO president Gurmeet Singh Kular and general secretary Manjinder Singh Sachdeva said delayed refund disbursements are blocking essential capital, making it difficult for businesses to manage routine operations, procure raw materials, and sustain day-to-day activities
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Expressing concern over mounting financial constraints, the Federation of Industrial and Commercial Organisation (FICO) has urged Punjab chief minister Bhagwant Mann to ensure the early release of pending Goods and Services Tax (GST) and Value Added Tax (VAT) refunds, adding that prolonged delays are squeezing working capital for micro, small, and medium enterprises (MSMEs).
Ludhiana stands as the largest city and primary industrial hub of Punjab, India, often called the “Manchester of India” or “Manchester of Punjab.” It acts as a major economic powerhouse in northern India, supporting thousands of small, medium, and large-scale manufacturing enterprises.
FICO president Gurmeet Singh Kular and general secretary Manjinder Singh Sachdeva said delayed refund disbursements are blocking essential capital, making it difficult for businesses to manage routine operations, procure raw materials, and sustain day-to-day activities. The industry body called for an urgent, time-bound mechanism to process outstanding claims and clear eligible dues without administrative bottlenecks.
The organisation also raised alarm over pre-GST VAT refunds, highlighting that several manufacturing units have been awaiting their legitimate dues for years. FICO urged the state administration to review all pending VAT cases and settle them on priority to inject much-needed liquidity into the industrial sector.
Echoing similar concerns, United Cycle and Parts Manufacturers Association (UCPMA) president Harsimerjit Singh Lucky and finance secretary Satnam Singh Makkar said they have submitted formal representations to chief minister Bhagwant Mann, finance minister Harpal Singh Cheema, additional chief secretary (Finance), and taxation commissioner Alok Shekhar.
They added that GST refunds for Ludhiana’s core bicycle industry have remained stuck for the past eight to 10 months, restricting manufacturers’ financial liquidity and hampering their ability to disburse employee salaries and meet operational expenses. The association has appealed for immediate intervention to safeguard local industry and restore financial stability.
