The demand highlights the importance of timely tax-refund disbursement not as a discretionary gesture but as a statutory right.

Punjab Taxpayers to Stage Statewide Protest Over Withheld GST and VAT Refunds

Businesses and tax professionals in Punjab are set for a statewide protest on December 12, 2025, to press the government to release long-pending refunds of Goods and Services Tax (GST) and Value Added Tax (VAT). The Punjab Tax Bar Association (PTBA), with multiple trade and industry bodies across the state, is protesting for these demands.

According to Anil Sarin, PTBA President At a state-level meeting representatives resolved unanimously to hold coordinated demonstrations at all district headquarters of Punjab to highlight “continued indifference” by the government. The delayed refunds reportedly date back to May, and the prolonged blockage has severely disrupted working capital for many micro, small and medium enterprises (MSMEs), traders, and industrial units, many of which are already contending with an economic slowdown.

Anil Sarin highlighted that despite repeated formal requests, reminders and representations submitted over months, “no effective steps were taken” by authorities to expedite the refund process. He cautioned that the continued withholding of legitimate GST and VAT refunds “has blocked working capital, disrupted business operations, and created undue stress for thousands of taxpayers across the state."

The PTBA and allied trade bodies have demanded the immediate release of all pending refunds and urged the government to restore confidence by clearing the backlog without further delay. The protest on December 12 is aimed towards conveying strong “deep concern and strong resentment” over the persistent delays, and the associations have warned that the agitation will intensify if there is no swift action.

The demand highlights the importance of timely tax-refund disbursement not as a discretionary gesture but as a statutory right. According to advocates, withholding refunds undermines trust between the business community and the administration and jeopardises the financial stability and viability of SMEs – a cornerstone of Punjab’s trade and industrial ecosystem.

The pressure mounts on the state government to respond as the December 12 date approaches. For thousands of traders and tax-paying businesses, the pending refunds are not just numbers on a ledger; they are the lifeline for continuing operations, paying wages, and sustaining their livelihoods. The outcome of this protest could majorly impact business confidence across Punjab’s commercial landscape, the newspaper concluded.

Source: Times of India