Wednesday, March 20, 2019

Posted at: Jul 12, 2018, 1:39 AM; last updated: Jul 12, 2018, 1:39 AM (IST)

City businessmen resent delay in VAT refunds

Avneet Kaur

Jalandhar, July 11

The delay in VAT refund has perturbed city businessmen as they have been waiting for a long time to get their refunds. Even many industrialists and traders say that they have not been paid for more than a year now and have lost hope of receiving any, given the state government’s “empty coffers”.

Industrialists rue that it had been over a year now, and the old refund to the tune of Rs140 crore was still stuck with the state government.

The Jalandhar Industrialist and Traders Joint Action Committee, president, Gursharan Singh, while talking to the Tribune said the industrialists have no liquid cash to run business in a smooth manner. While all the other districts have been receiving VAT refund, Jalandhar has not received any since July 2017.

“Despite repeated reminders and requests by businessmen, no action has been taken in this regard. GST has hampered the small scale industries, businesses have gone down, therefore, if stringent action is not taken for industries at the earliest, the situation will worsen and our industry will be pushed towards further crisis because industrialists are paying interest on bank limits,” he further said.

He also said a meeting was held with Finance Minister Manpreet Badal where local industrialists raised the issue and told the minister that it was becoming very difficult to run their business as their VAT refunds were not being released by the state government and he assured that the refunds will be released but nothing has been done till date.

Another city-based Industrialist, Rashpal Singh said, “Since GST has been implemented, the industrialists and traders are in losses. Also it has been about a year now. Our lakhs of rupees are blocked with the government and we are using bank limits on higher rates of interest to run the trade.”

Finance companies offering loans on VAT refunds

President of the Jalandhar Focal Point Extension Association Narinder Singh Sagoo said, “Left in lurch, businessmen are in such a worse state of condition that they are taking loans on their own money i.e. on their VAT refunds from finance companies, whereas the finance companies are offering loans on VAT refunds with as much as 24 per cent interest.

He added, “Where would a businessmen go now when he is being forced to pay 24 per cent of interest on his own hard-earned money.


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