Mohali, October 31, 2026: Businesses in Mohali are looking to a new phase of Goods and Services Tax (GST) refund reforms beginning November 1, even as the Mohali Industries Association (MIA) has raised concerns over older refund applications that it says have been pending for months. The change offers a potentially faster route for eligible new claims, but it does not automatically clear existing arrears.
At an interactive session organised by the CGST Chandigarh Zone, MIA representatives raised the issue with Central Board of Indirect Taxes and Customs (CBIC) chairman Vivek Chaturvedi. According to reporting published on October 31, former MIA president Anurag Aggarwal said some micro and small manufacturing businesses had been waiting six to eight months for refunds, affecting their working capital. These delays are the industry’s reported experience, not a government-confirmed total of unpaid claims.
What changes for GST refunds from November 1?
The national GST reform package, backed by the 57th GST Council’s October 8 recommendations and subsequent central tax notifications, aims to reduce manual processing for specified refund categories. The reforms include:
- 10-day acknowledgement window: The period for issuing an acknowledgement or deficiency memo is being reduced from 15 days to 10. A claim may be deemed acknowledged if neither is issued within that period, but acknowledgement is not the same as refund approval.
- Risk-based provisional refunds: Eligible claims involving zero-rated supplies and inverted duty structures can qualify for system-driven provisional sanction of 90% of the claimed amount, subject to statutory conditions and risk checks.
- Excess cash ledger refunds: The system is intended to sanction qualifying claims for excess balances in the electronic cash ledger without routine officer intervention.
These changes are intended to accelerate legitimate refunds, not to guarantee that every application will receive immediate or automatic payment. The updated system also retains exceptions and eligibility conditions. Some changes to refund application formats are scheduled separately, so businesses should follow the currently applicable portal instructions rather than assume every reform starts on the same day.
Why Mohali manufacturers are concerned about the old backlog
The local industry association says delayed input tax credit (ITC) refunds have tied up funds that manufacturers would otherwise use for wages, supplier payments, raw materials and daily operations. The concern is especially acute for smaller businesses with limited cash reserves.
One issue raised by industry representatives is the inverted duty structure, in which the tax rate on certain inputs exceeds the rate on finished products. The association pointed to tractor-related components as an example of how tax-rate differences can leave accumulated ITC. Whether an individual business is entitled to a refund depends on the precise goods, tax periods, applicable exclusions and supporting documentation.
During the Chandigarh Zone interaction, the CBIC chairman was reported to have said that applications filed from November 1 would be processed under the new automated mechanism. However, reporting did not establish a definite timetable for clearing applications already pending. That distinction matters: the announcement is positive for future processing, but it is not a confirmed resolution of Mohali industry’s existing refund backlog.
What the reform could mean for Tricity businesses
Mohali’s manufacturing and engineering firms are connected to suppliers, service providers, logistics companies and professional firms across Chandigarh, Panchkula, Zirakpur, Kharar and Dera Bassi. Faster eligible refunds could reduce the time businesses spend waiting for tax-related cash flow and allow them to plan purchases and operations with greater certainty.
For exporters and firms selling products subject to inverted duty structures, the main benefit is the prospect of earlier provisional access to money otherwise held up in the refund process. Actual outcomes will depend on system implementation, claim quality, risk classification and processing of exceptions.
Practical points for business owners and finance teams
Companies should review their pending refund application status separately from any new claims, reconcile tax returns and input-credit records, and ensure required documents and account details are correct. Businesses should also check whether a claim falls within a risk-based provisional category or requires officer review. Accountants and tax advisers can help confirm the applicable legal conditions and effective dates.
Businesses with older applications should not assume that filing a fresh claim will resolve an existing case. They should continue to use the official GST portal and established departmental channels for pending matters.
What happens next?
The November 1 reforms provide a clear near-term development for Punjab’s business community. The key question for Mohali’s manufacturers is whether the improved processing of new claims is followed by measurable progress on older cases. MIA’s request for faster clearance remains an important issue to track.
Sources and verification: The Tribune, October 31, 2026, on the Mohali Industries Association meeting; Dawn Punjab, October 31, 2026; Ministry of Finance / GST Council, October 8, 2026, official recommendations; Reuters, October 27, 2026, on the November 1 implementation. This report distinguishes reported industry concerns from confirmed policy provisions. It is general news coverage, not individual tax advice.