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Bizmen want VAT refunds adjusted with SGST - GST Station

Bizmen want VAT refunds adjusted with SGST

Bizmen want VAT refunds adjusted with SGST

    LUDHIANA: Miffed over the pending VAT refunds from almost two years now, the city-based businessmen are up in arms against the state taxation department.

    Businessmen are of the view that the state government is not doing its part to help them get rid of the problem in which huge amount of their money has been stuck with the taxation department.

    After repeated failed attempts to get back their hard-earned money, businessmen are now demanding that if the state government is unable to pay them back their VAT refunds, these should be adjusted against the state GST (SGST) tax which they are liable to pay to the government every month.

    Rajnish Ahuja, president of the Focal Point sheds association, said: “VAT refund problem is turning into a nightmare for us as even after the system of VAT being abolished, the refunds are still pending. Our request for the release of pending VAT refunds has fallen on deaf ears and we have now come with a solution. Since the government has to pay back VAT refunds and every month we pay SGST to the government, then why can’t the government start adjusting our pending VAT against the SGST. This issue was discussed at the recently concluded investor summit roadshow in the city in which the state finance minister and industry minister were also present. We request both of them to treat the issue of pending VAT refunds as their topmost priority before it becomes an embarrassment for the state government.”

    Kulpreet Malhotra, senior member of the United Cycle and Parts Manufacturers’ Association (UCPMA), said: “VAT refunds amounting to several crores of hundreds of businessmen are still pending with the state taxation department since 2017. If the taxation department is unable to pay back the hard earned money of businessmen then it does not have any right to collect SGST every month from us. Only solution to this problem is adjustment the pending VAT with SGST. We are also ready to get the adjustments done on a monthly basis rather than claim VAT refund in one go.”

    Sachin Sharma, an auto parts manufacturer from the city, said: “The delay in disposing of the VAT refunds has resulted in a bad impression on the future investors who are willing to set up factories in the state. We request the government to take notice of this problem as it has been two years now.”

    Source- Times of India.