The North News
Chandigarh, August 1
In a bid to restore confidence among local businesses and demonstrate bureaucratic efficiency, the Punjab government has sanctioned Goods and Services Tax (GST) refunds worth Rs 241.17 crore in July, marking a significant step in clearing a long-standing backlog of pending applications. Punjab’s Finance, Planning, Excise and Taxation Minister, Harpal Singh Cheema, made the announcement on Friday, asserting that the state is moving towards a more responsive and transparent tax administration. The refunds relate to 1,408 applications cleared in July alone, Cheema told reporters at a press conference.
As of June 30, the state had been grappling with 3,452 pending GST refund claims amounting to ₹832.93 crore. Cheema revealed that by the end of July, nearly 41% of those applications had been processed. Of the ₹241.17 crore sanctioned, ₹57 crore represents the State GST (SGST) component, reimbursed directly from Punjab’s own treasury, while the remaining ₹184.17 crore – part of the Central GST (CGST) and Integrated GST (IGST) – will be reimbursed by the Union Government. “These refunds are not just technical accounting entries,” said Cheema. “They directly affect the net revenue of the state, particularly the SGST portion, which is deducted from our gross tax collection figures.”
The minister also noted that an additional 663 applications worth ₹52 crore are currently under review and expected to be cleared soon. If processed as planned, this will raise the overall disposal rate to 60% in terms of the number of applications and to 35% in terms of the total amount claimed. Cheema framed the announcement as part of the Aam Aadmi Party-led government’s broader commitment to economic transparency and fiscal efficiency. “We are prioritising the fast-track clearance of GST refunds to improve liquidity for local enterprises and bolster ease of doing business in Punjab,” he said.
GST refund delays have long been a sore point for businesses in India, often blamed on red tape and technical glitches. By aggressively tackling the backlog, the Punjab government is positioning itself as a regional outlier in administrative reform, though the road to full clearance remains.
