Ludhiana, Jun 22 (PTI) Punjab's bicycle industry has sought immediate release of pending GST refunds, saying delays have created a severe working capital crisis and pushed many manufacturing units into financial distress. ​ The United Cycle and Parts Manufacturers Association, in a statement issued on Monday, said bicycle manufacturers are facing liquidity problems as large amounts of GST refunds remain pending with the Punjab government. ​ Former president of the industry body DS Chawla said the Centre's decision to reduce GST on bicycles from 12 per cent to 5 per cent had benefited customers and promoted an eco-friendly mode of transport.

However, he said, manufacturers were facing difficulties because raw materials such as steel, rubber, plastic granules, paint, chemicals and packaging materials continue to attract 18 per cent GST. ​ As a result, manufacturers have to claim refunds of the tax difference, but delays in processing these claims have blocked substantial funds, he said. ​ Chawla said the shortage of working capital has forced many units to depend on loans and bear high interest costs. ​ He also alleged irregularities in the refund process and urged the government to make the system completely faceless and online. ​ Since GST returns are already filed digitally, the refund mechanism should also be processed electronically to ensure transparency and reduce corruption, he said. ​ Chawla outlined the problem affects both MSMEs and large manufacturers alike and warned that continued delays could adversely impact production, employment and government revenue. ​ He appealed to Chief Minister Bhagwant Mann and the state Finance Minister to clear all pending GST refunds on priority and ensure the timely processing of future claims. ​ The association also demanded strict action against officials responsible for unnecessary delays in releasing refunds. PTI COR VSD SHM