CBIC Greenlights 90% Provisional GST Refunds for Inverted Duty Structure Claims

CBIC Greenlights 90% Provisional GST Refunds for Inverted Duty Structure Claims

• Immediate Working Capital Relief

  The Central Board of Indirect Taxes and Customs (CBIC) has directed its field formations to provisionally sanction 90% of the refund amount for claims related to the Inverted Duty Structure (IDS). This directive applies to all refund applications filed on or after October 1, 2025.

• Alignment with Zero-Rated Supplies Mechanism

  This provisional refund mechanism is designed to operate similarly to the existing process for zero-rated supplies, employing a system of risk identification and evaluation.

• Benefit to Key Industries

  The decision is expected to provide immediate and significant relief to industries commonly affected by IDS, such as textiles, footwear, and fertilizers, by easing their working capital constraints.

• Implementation of GST Council Recommendation

  This move operationalizes an earlier announcement by the GST Council, which had recommended the upfront release of 90% of refunds for exporters on a provisional basis, a part of broader tax reforms.

Source:-Economic Times