- Gujarat traders are still waiting for VAT refunds from the pre-GST era, with many claims approved on paper but not paid for years after the VAT system ended in July 2017.
- The main blockage is that legacy VAT portal records are largely inaccessible, so taxpayers cannot update or verify old bank details; authorities now require physical affidavits to confirm bank ownership.
- Refund processing still runs through local wards and Ahmedabad accounts branches, with high-value claims requiring additional approvals in Gandhinagar, adding layers of delay.
- Claims above ₹25 lakh need Deputy Commissioner clearance, and those above ₹50 lakh need Additional Commissioner approval.
- Audit and verification files are often sent back multiple times with fresh objections, stretching refund timelines by two to three years and causing ongoing liquidity problems for traders.
Source: english.gujaratsamachar.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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