Federation of Industrial and Commercial Organization (FICO) has written to Finance Minister Harpal Singh Cheema to press for release of GST refunds, flagging a delay in the process.
FICO president Gurmeet Singh Kular said timely release of GST refunds was essential to maintain liquidity and financial stability of industries, especially exporters and micro, small and medium enterprises. Delays in refunds lead to blockage of working capital, increased borrowing costs and operational difficulties for businesses, he said.
“We urge the government to ensure timely release of GST refunds so industries can use their funds for growth and expansion,” he said.
FICO general secretary Manjinder Singh Sachdeva said, “We express serious concern regarding the delay, particularly due to the inverted duty structure. Products, such as bicycles, sewing machines and agricultural implements, fall under the 5 per cent GST slab, whereas their raw materials attract taxes at 18 per cent. Substantial amounts of working capital remain blocked with the government in the form of pending refunds. It is causing working capital shortages, excessive utilisation of bank limits and higher interest burdens on industries.”
