Industrial Bodies Strongly Oppose Government Over Delay in GST Refunds

Ludhiana, December 27, 2025: Industrial bodies in Ludhiana have strongly opposed the Punjab Government for not issuing long-pending GST refunds and demanded their immediate release. A meeting of various industrial bodies was held under the leadership of Jatinder Mittal, Chairman, UCPMA, along with Gurmeet Singh Kular, President, FICO. The representatives urged Punjab Finance Minister Harpal Singh Cheema and Industry Minister Sanjeev Arora to intervene and ensure the prompt disbursement of GST refunds.

In a joint statement, the industrialists pointed out that finished products such as bicycles, sewing machines and agricultural implements fall under the 5 per cent GST slab, while raw materials attract a higher GST rate of 18 per cent. Due to this inverted duty structure, GST refunds get stuck with the government, despite being the industry’s own money.

They stated that the non-release of refunds has resulted in a severe working capital crunch, forcing industries to over-utilise bank limits and pay higher interest rates. It was highlighted that GST refunds have been pending for the past six months, causing immense financial stress to the manufacturing sector.

The industrial bodies demanded that GST refunds should be released immediately and urged the government to direct concerned GST officials to ensure automatic release of refunds once returns are filed. They clarified that GST refunds are neither grants nor subsidies, but legitimate dues belonging to the industry.

Warning of agitation, the representatives said that if the government fails to release the pending GST refunds, the industry would be compelled to launch a protest from January 15, 2026.

Those present at the meeting included Jatinder Mittal (Chairman, UCPMA), Gurmeet Singh Kular (President, FICO), Rajinder Narang (Chief Advisor, UCPMA), Satnam Singh Makkar (President, Dhandari Industrial Welfare Association), Inderjit Singh Navyug (President, Industrial Welfare Association), Pardeep Wadhawan (General Secretary, Small Scale Manufacturers Association) and Ajit Kumar (Senior Vice President, Moongphali Mandi Small Scale Manufacturers Association).