FICO writes a Letter to Finance Minister Punjab to Release the GST Refunds

Ludhiana, June 6, 2026: Federation of Industrial & Commercial Organization (FICO) has written a Letter to Harpal Singh Cheema, Finance Minister, Punjab, regarding the timely release of GST Refunds. 
Gurmeet Singh Kular, President, FICO said that the timely release of GST refunds is essential to maintain the liquidity and financial stability of industries, especially exporters and MSMEs. Delays in refund disbursal led to blockage of working capital, increased borrowing costs, and operational difficulties for businesses. The GST framework was introduced to create a transparent and efficient tax system, and prompt refund processing is a key component of this objective. We urge the Government to ensure timely release of GST refunds so that industries can utilize their own funds for growth and expansion.
Manjinder Singh Sachdeva General Secretary FICO said that on behalf of Industry, we express the serious concern regarding the delay in GST Refunds, particularly due to the inverted duty structure. Products such as Bicycles, Sewing Machines, and Agricultural Implements fall under the 5% GST slab, whereas their raw materials attract GST at 18%. As a result, substantial amounts of industry’s working capital remain blocked with the Government in the form of refunds. This blockage is causing working capital shortages, excessive utilization of bank limits, and higher interest burdens on industries. 
Satnam Singh Makkar, Propaganda Secretary, FICO said that the Government does not give any interest on our GST Refunds, but industry is paying hefty interests to banks, this is our own money, and it should be released with automated monthly system.
FICO suggested that that in line with the ECLGS 5.0 (Emergency Credit Line Guarantee Scheme) by Government of India. It is requested that the Government should intervene with the concerned GST authorities and introduce an automatic and time-bound refund mechanism after return filings. GST refund is neither a subsidy nor a grant; it is the industry’s own money and should be released without delay.