GST Refunds Worth Over ₹700 Crore Pending in Punjab, Traders Suffering: Anil Sarin

Ludhiana, September 9, 2026: Punjab Tax Bar Association State President Anil Sarin today demanded the immediate release of long-pending GST refunds to traders across Punjab. He was accompanied by Association General Secretary Om Kamal, Prince, Ashok Vadera, Gaurav, and other office-bearers and members.
Sarin said that GST refunds exceeding ₹700 crore are pending in Punjab, blocking the working capital of traders and severely affecting their businesses. He said that when a trader’s funds remain blocked for several months, the entire business cycle is disrupted and the trader’s ability to operate is adversely affected.
He said tax bars had earlier been forced to go on strike over the refund issue, following which the situation improved for a few months. However, refunds have again remained pending from March through September. Questioning the claims of rising GST revenue made by the Finance Minister, Sarin said the actual revenue position must be assessed after taking refunds paid to taxpayers into account.
Sarin also objected to the large number of notices being issued to traders and the alleged demand for unnecessary documents beyond the prescribed procedure. He said that where a trader has made a genuine purchase, claimed valid Input Tax Credit (ITC) and filed the required return, recovery should be pursued from the actual defaulting party rather than repeatedly burdening the compliant trader.
He further said that withholding refunds while simultaneously pressuring traders to deposit cash against ITC-related demands amounts to a double burden. The government, he said, should ensure that tax administration does not undermine legitimate businesses.
Issuing a clear warning, Sarin said that if all pending refunds are not released and the genuine grievances of traders are not resolved within 15 days, all Tax Bars across Punjab will be compelled to go on a collective strike. If departmental functioning is disrupted as a result, the responsibility will rest entirely with the Punjab Government.
Sarin urged the government to restore normal functioning of the department, clear all pending refunds immediately and review cases pending for nearly one-and-a-half years, providing relief to traders so they can continue their businesses smoothly.