Punjab Industries Stuck with ₹1,100 Crore GST-VAT Refunds

Punjab’s manufacturing and service sectors have raised alarms over a backlog of GST and VAT refunds that amount to roughly ₹1,100 crore. The pending refunds are reported to be hampering working capital for many businesses, especially small and medium enterprises that rely on timely tax credits. Industry bodies have appealed to state and central tax authorities for expedited processing, warning that prolonged delays could affect production and employment. Officials have acknowledged the issue and indicated that a review of the refund mechanism is underway, though no specific timeline has been announced. The situation underscores the broader challenges in India’s indirect tax system, where refund delays can strain cash‑flow‑sensitive firms.