Ludhiana, December 8, 2017
Although the tax reigme has changed from Value Added Tax (VAT) to Goods and Services Tax (GST), large amount of VAT refunds of the industry are still pending with the State Excise and Taxation Department (SETD).
“Industry is struggling to survive as it is going through the crucial phase of changeover after the implementation of the GST. The Government of Punjab has released Rs 45 crore for the Ludhiana district I, II, III. So, we want that the department should immediately release the pending VAT refund as the industry is paying interest on its bank limits,” said Gurmeet Singh Kular, president of the Federation of Industrial and Commercial Organisation (FICO).
The substantial period for the VAT refund has already passed, still the department owes a huge amount to the industry. No action has been taken in this connection by the authorities concerned.
“VAT refund is not a grant or subsidy. It is industry’s own money. It should be processed at the earliest to facilitate the industry in this crucial period of changeover,” said Manjinder Singh Sachdeva, general secretary, FICO.
“If things continue to remain same then soon the city’s industry will become sick. Industrialists are paying interest to banks on loans that they have taken to run units while their own money is lying with the government,” said Vijay Rattan, a medium entrepreneur.
“Five months has passed since the implementation of the GST. On one hand we are filing GST returns and on the other our VAT refunds are still pending with the government. It has become difficult to bear overhead charges of our units. As a result many units in the city be it hosiery, cycle or yarn industry are laying off their workforce,” he added.
“The government should have cleared the pending refunds within two months, but as usual it lacks planning. Everything has been done in a hurry and the one which is suffering is the industry. Pending VAT refunds should be released at the earliest,” said Gursewak Singh, a cycle parts manufacturer.