Businessmen demand interest on delayed VAT refunds

  • | Thursday | 19th July, 2018

The state taxation department should pay interest to us for the delay in paying us back our own money.” But at the same time, they are demanding the government allocate more funds for refunds, as there is still a huge backlog of pending refunds, especially those related to VAT. LUDHIANA: A day after the state government ordered the release of Rs62 crore for disposing of VAT and GST refunds, businessmen heaved a sigh of relief. Though the government has acted, it is very late, and it should now be ensured that refunds are disposed of on a ‘first-come, first-served’ basis, and not out of turn.”According to Brijesh Vohra, a sewing machine manufacturer: “Our VAT refunds worth lakhs are pending with the state taxation department. So, releasing Rs62 crore for the entire state will still not solve Ludhiana’s problem, which has pending refunds of over Rs100 crore.”Speaking to TOI, Narinder Bhamra, president of Fasteners Manufacturers Association of India (FMAI), said: “Our VAT refunds are pending with the state taxation department for a very long time now.

LUDHIANA: A day after the state government ordered the release of Rs62 crore for disposing of VAT and GST refunds, businessmen heaved a sigh of relief. But at the same time, they are demanding the government allocate more funds for refunds, as there is still a huge backlog of pending refunds, especially those related to VAT. They are also demanding the state taxation department to dispose of the refunds on a ‘first-come, first-served’ basis, and payment of interest on delayed VAT refunds According to Upkar Singh Ahuja, president of Chamber of Industrial and Commercial Undertakings (CICU): “We are thankful to the government for taking note of this serious issue of pending VAT refunds, but at the same time, we request the finance minister to release a bigger amount for refunds, as Ludhiana district alone has several crores of VAT refunds pending, which is the highest in the state. So, releasing Rs62 crore for the entire state will still not solve Ludhiana’s problem, which has pending refunds of over Rs100 crore.”Speaking to TOI, Narinder Bhamra, president of Fasteners Manufacturers Association of India (FMAI), said: “Our VAT refunds are pending with the state taxation department for a very long time now. There are refunds of some industrialists which are even two years old. Though the government has acted, it is very late, and it should now be ensured that refunds are disposed of on a ‘first-come, first-served’ basis, and not out of turn.”According to Brijesh Vohra, a sewing machine manufacturer: “Our VAT refunds worth lakhs are pending with the state taxation department. Sometime ago, a partial amount was released to us. The state taxation department should pay interest to us for the delay in paying us back our own money.”

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