Tax bar, trade bodies threaten agitation over delay in release of GST, VAT refunds

Punjab Tax Bar Association, District Taxation Bar Associations (Sales Tax), and various trade organisations have expressed serious concern over the prolonged delay in the issuance of VAT and GST refunds by the state government. They resolved that if pending refunds were not released over the next 10 days, they would agitate at all district headquarters.

Flanked by representatives of the different organisations, Anil Sarin, state president, Punjab Tax Bar Association, said that these delays had created significant financial hardship for taxpayers across the state, particularly small and medium enterprises that relied heavily on timely refunds to maintain their working capital.

Sarin claimed that despite repeated representations and assurances from the authorities, a large number of refund applications — some pending for several months — remain unresolved. This has resulted in avoidable liquidity constraints, disruption in business operations, and an overall decline in trade confidence in the state.

The associations emphasised that the timely disbursement of refunds was not a concession but a statutory right of the taxpayer. “Holding back legitimate refunds constitutes not only non-compliance with established provisions of VAT and GST laws but also undermines the trust between the business community and the administration,” some members rued.

These groups urge the CM, the Finance Minister, and the Financial Commissioner (Taxation) to take immediate and concrete steps for clearing all pending VAT and GST refunds without further delay, establishing a transparent, time-bound mechanism for processing future refund claims, and fixing accountability for undue delays in refund disbursal.

Prominent members present on the occasion were Raj Kumar Singla, president, Fastener Suppliers Association; Parveen Goyal, president, Punjab Pardesh Vypaar Mandal; Parveen Sharma, general secretary, Punjab Pardesh Vypaar Mandal; Ayush Aggarwal, state secretary, Punjab Pardesh Vypaar Mandal; Vishal Puri, member, Punjab Pardesh Vypaar Mandal; Navdeep Singh, member, Punjab Pardesh Vypaar Mandal; Bobby Jindal, general secretary, Punjab Dyers Association; B K Gupta, chairman, Punjab Tax Bar Association; Rupinder Kansal, secretary general, Punjab Tax Bar Association; Tarlok Bhalla, vice-president, Punjab Tax Bar Association; Arun Kanwal, general secretary, Punjab Tax Bar Association; Saket Garg, president, DTBA (Sales Tax)-Ludhiana; Naresh Gaba, secretary, DTBA (Sales Tax)-Ludhiana and Jatinder Mittal, chairman, United Cycle Parts Association.

Holding back legitimate refunds constitutes not only non-compliance with established provisions of VAT and GST laws, but also undermines the trust between the business community and the administration.

Associations' Members