Times of
India: Ludhiana: Saturday, August 31, 2019.
Two
years after VAT was scrapped and GST launched, the Punjab government is yet to
refund Rs 309.59 crore paid towards VAT by the state’s businessmen, according
to an RTI reply furnished by the Punjab taxation department to city-based
businessman Badish Jindal.
The
reply, however, pointed out that out of the total amount, refund of Rs 211.70
crore could not be processed due to lack of requisite documents. Jindal,
president of the Federation of Punjab Small Industries Association (Fopsia),
said, “Punjab government is claiming high incentives for the industries, but
the fact is that the state is performing very poorly on GST. In reply an RTI
petition, the state tax department has admitted that Rs 309.59 crore VAT
refunds are lying pending. A refund amount of Rs 84.14 crore was sanctioned,
but only Rs 56.69 crore issued to the treasury, while the treasurer has issued
Rs 11.68 crore refunds. So, Rs 45.01 crore is still with the treasury.”
The
Fopsia chief alleged that since there is shortage of cash in the treasury, the
amount meant to be distributed as VAT refunds must have been diverted by the
government to meet other expenses. Jindal maintained, “There is discrepancy in
official data as well, as VAT refund of Rs 166 crore is pending in Ludhiana
alone, while the state government is claiming total VAT refunds of Rs. 85.14
crore (with clear documents). So, the government is hiding facts from the
general public. By 2022, the state is going to be bankrupt due to non-receipt
of compensation of GST from the central government. The Fopsia is planning to
file a PIL on the delay in VAT refunds as the act provides for payment of
interest if the refund gets delayed beyond 60 days.”
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