The industrial and trading communities in the State of Punjab are considering themselves to be duped of the VAT refunds as the State Government of Punjab has not released the funds. While the government has introduced the professional tax, it has not processed the VAT refunds to add to their burden.
Individuals are feeling the heat of professional tax, which is levied at Rs 200 per month. But, the question is, what is the motive behind the introduction of this tax, which collects Rs 2,400 annually? The government has not given clarity on the mode of deposit.
Reports are saying that the government’s treasury is running dry, and hence, the professional tax is introduced. The professional tax collection portal exists since April 2018, but there is no clarity on the mode of deposit.
If the government has intentions of generating revenues, then it should make serious efforts to ensure timely collection of the tax, if not, it should be scrapped. The revenue generation has not been significant so far.
The Central Government decided to implement one tax, one nation. The State Government introducing their taxes like professional tax is contradicting the Central Government’s intentions.
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The delay in processing VAT refunds has raised concerns among the business owners in Punjab. They are also concerned about the lag in SGST refunds for some businesses. The delay in VAT refunds might have held up considerable capital of the business owners.
Adding to their woes, the GST refund of about Rs 54 lakh are pending with the government. While the government has processed a few SGST returns, it has not prioritised VAT refunds.
Around 400 files of worth Rs 8 crore is yet to be looked into by the CCI of Ludhiana III, while the number of files lying pending with Ludhiana I and II are much higher than Ludhiana III.
Engineer by qualification, financial writer by choice. I am always open to learning new things.