Delhi CM Rekha Gupta echoes GST reform spirit with Diwali gift for traders

Recently, in his address to the people on Independence Day, PM Narendra Modi promised GST reforms as a “Diwali gift”; it set the tone for optimism across India’s MSME sector. Now, following the same sentiment, in Delhi, CM Rekha Gupta has announced that her government will release nearly Rs 1,600 crore of pending GST refunds, which were long overdue since 2019, into the accounts of Delhi’s traders before Diwali.

For the capital’s IT traders and resellers, this news brought some sense of relief. 

Rekha Gupta’s announcement – a direct boost to traders

On her official Twitter handle, CM Gupta wrote:

“Before this year’s Diwali, our government is giving a big gift to Delhi’s traders. Nearly Rs 1,600 crore of pending GST refunds since 2019 will soon be transferred into the accounts of traders. It is unfortunate that the previous government did not take any steps to return this rightful due, and the hard-earned money of traders remained stuck for years. Our government has decided that this entire refund will be cleared before Diwali so that traders can celebrate the festival with greater prosperity. To make the refund process faster and more transparent, a new IT system has been developed with the help of IIT Hyderabad. Now every application will be processed quickly and correctly. Our resolve is to honour Delhi’s traders, make business easier, and give new momentum to the economic progress of the capital.”

The message is clear. Delhi’s traders will finally see their money come back, and the process of refunding is being systematised to ensure transparency and speed.

Why it matters for Delhi’s IT traders and resellers

For IT resellers, distributors, and small technology traders in Delhi, refunds pending since 2019 were not just numbers on paper. It would certainly impact the working capital, expansion plans, and daily operations. Here’s the breakdown of the announcement for a better understanding:

• Immediate liquidity relief – with the refund of Rs 1,600 crores promised to the IT traders. If implemented, they can access funds that were frozen for years.

• Festive season boosts sales – With the Diwali festivity around the corner, it allows traders to reinvest in inventory, offer better deals, and capture seasonal demand.

• Encouragement for channel partners – Distributors and retailers can focus on expanding their business, with restocking and improving on techs.

Linking Delhi’s move to the bigger GST reform

The Prime Minister’s upcoming GST reforms, slated for October 2025, aim to simplify slabs, rationalise rates, and cut down disputes. Delhi’s refund clearance initiative complements this broader national agenda. Both measures converge on the same principle: reduce financial and compliance stress on businesses, especially MSMEs.

For IT channel partners, the dual effect of structural GST simplification and pending refund clearance could reshape how they plan business growth in the next two years.

What to expect in the future

The new IT system for refund processing is a key signal. If implemented well, it could set a benchmark for other states to follow. Traders can expect:

• Faster turnaround on refunds – No more years-long waits; processing times could shrink drastically.

• Greater transparency – Automated systems reduce room for disputes or discretionary delays.

• Improved ease of doing business – With refunds timely and tax slabs rationalised, traders will spend less time on compliance and more on scaling their operations.

• Higher trust between state and business – Honouring commitments builds long-term confidence in governance.

The bottom line

Delhi’s IT traders and resellers, who have been dealing with frozen refunds for a long time, now see hope. With Rs 1,600 crore expected to return to their accounts before Diwali, this announcement is lauded by Delhi's IT associations.

Along with the Centre’s push for a simpler GST structure, the Delhi-based IT resellers and traders are looking forward to the Diwali festive period to witness how this is going to be implemented and the benefits they could reap if they get the expected refund.

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