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Home Chandigarh

PUNJAB GOVERNMENT EXPEDITES GST REFUNDS, SANCTIONS RS 241.17 CRORE IN JULY: HARPAL SINGH CHEEMA

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August 1, 2025
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Chandigarh, August 1

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Punjab Finance, Planning, Excise and Taxation Minister Advocate Harpal Singh Cheema announced on Friday that the Punjab government is making significant progress in processing pending Goods and Services Tax (GST) refund applications by sanctioning 1,408 applications in July, amounting to a total refund of Rs 241.17 crore.

Addressing a press conference here, the Finance Minister Harpal Singh Cheema said that as of July 31, 2025, the state has cleared a substantial portion of the backlog, demonstrating a concerted effort to streamline the refund process for businesses. He said that as of June 30, 2025, there were 3,452 pending refund applications, totaling Rs 832.93 crore. He revealed that in July, refunds totaling Rs 241.17 crore were sanctioned, comprising Rs 57 crore for the State Goods and Services Tax (SGST) component, refunded directly from the State Treasury, and Rs 184.17 crore for the Integrated Goods and Services Tax (IGST) and Central Goods and Services Tax (CGST) components, which will be reimbursed by the Central Government.

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Highlighting the direct impact of these refunds on the state’s finances, Finance Minister Cheema said that SGST refunds are deducted from gross tax collections to determine the state’s net revenue. He also stated that an additional 663 applications, totaling Rs 52 crore, are currently being processed. Once these applications are approved, the state expects the overall disposal ratio to reach 60% in terms of the number of applications and 35% in terms of the total refund amount.

Finance Minister Harpal Singh Cheema reiterated the AAP led state government’s commitment to ensuring a transparent and efficient tax administration system. He added that the state will continue to prioritize the swift resolution of pending refunds to support local businesses and improve the ease of doing business in Punjab.

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