Delhi government clears ₹694 crore in GST refunds for traders

Of this, ₹227 crore was credited in September alone, marking the highest-ever monthly payout in Delhi’s GST refund history.

The Delhi government has accelerated the processing of GST refunds, disbursing a record ₹694 crore so far this fiscal, chief minister Rekha Gupta announced on Friday, calling it a reflection of her administration’s push for “Ease of Doing Business.”

Delhi CM Rekha Gupta (RAJ K RAJ /HT PHOTO)

According to officials, the department of trade and taxes has cleared 7,375 refund applications between April and September of FY 2025-26 – the fastest disbursal pace in recent years. Of this, ₹227 crore was credited in September alone, marking the highest-ever monthly payout in Delhi’s GST refund history.

“This Diwali, Delhi’s traders will celebrate not only the festival of lights but also a festival of progress,” Gupta said. “Our goal is to ensure every trader, big or small, receives their rightful refund on time. We’ve used modern technology to make the process faster, transparent, and trader-friendly.”

The CM said the government has adopted an advanced data analytics and automation-driven module developed with IIT-Hyderabad to streamline verification and settlement. Officials said the system has sharply reduced processing times by automating checks and removing manual bottlenecks.

Officials said the move follows years of trader complaints about refund delays, which had led to a growing backlog and liquidity stress among small and medium enterprises. Gupta said her government made refund clearance a “mission priority,” directing officials to settle all genuine, undisputed claims within fixed timelines.

She added that the administration has been pairing fiscal reforms with broader trader welfare measures. “We have established the Delhi Vyapari Kalyan Board to directly address issues faced by the trading community. Our aim is to make it easier for traders to expand and innovate instead of getting stuck in paperwork,” she said.

Officials said faster refunds will ease cash flow pressures, reduce dependence on loans and help businesses reinvest during the festive season. The timing, they added, is expected to lift market sentiment across major hubs like Chandni Chowk, Karol Bagh, Lajpat Nagar and Gandhi Nagar.