In a decision that will benefit small exporters, the GST Council has approved faster export refund claims for those with refunds below ₹1,000. Around 150,000 shipping bills currently pending are expected to be cleared under this provision.
"This will help small exporters which make exports through the courier and postal mode," the council said.
It also approved the sanction of risk-based provisional refunds to facilitate refund claims on account of zero-rated supply of goods or services, or both, to a special economic zone developer or unit for authorised operations.
Refunds stuck under the inverted duty structure in sectors such as textiles, pharma, chemicals and fertilisers will also be released on a provisional basis.
"The GST Council's decision to clear export refunds within seven days is a very welcome step that will ease liquidity pressures on exporters. Timely and predictable refunds are essential for maintaining India's export competitiveness, and we look forward to seamless implementation on the ground," said Ajay Sahai, director-general of the Federation of Indian Export Organisations.
The measures will improve the liquidity condition of exporters amid the US imposing 50% tariffs on India. The US decision would impact around $48.2 billion of outbound shipments based on 2024 trade values. The GST Council recommended an amendment to the rules to provide for sanction of 90% of refund claimed as provisional refund "on the basis of identification and evaluation of risk by the system", the council said in a statement.
It also recommended issuance of a notification to list certain categories of registered persons who may not be granted refunds on a provisional basis. This provision shall be operationalised from November 1.
The place of supply for " intermediary services" will be determined as per the location of the recipient of such services. "This will help Indian exporters of such services to claim export benefits," it said.
"This will help small exporters which make exports through the courier and postal mode," the council said.
It also approved the sanction of risk-based provisional refunds to facilitate refund claims on account of zero-rated supply of goods or services, or both, to a special economic zone developer or unit for authorised operations.
Refunds stuck under the inverted duty structure in sectors such as textiles, pharma, chemicals and fertilisers will also be released on a provisional basis.
"The GST Council's decision to clear export refunds within seven days is a very welcome step that will ease liquidity pressures on exporters. Timely and predictable refunds are essential for maintaining India's export competitiveness, and we look forward to seamless implementation on the ground," said Ajay Sahai, director-general of the Federation of Indian Export Organisations.
The measures will improve the liquidity condition of exporters amid the US imposing 50% tariffs on India. The US decision would impact around $48.2 billion of outbound shipments based on 2024 trade values. The GST Council recommended an amendment to the rules to provide for sanction of 90% of refund claimed as provisional refund "on the basis of identification and evaluation of risk by the system", the council said in a statement.
It also recommended issuance of a notification to list certain categories of registered persons who may not be granted refunds on a provisional basis. This provision shall be operationalised from November 1.
The place of supply for " intermediary services" will be determined as per the location of the recipient of such services. "This will help Indian exporters of such services to claim export benefits," it said.
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