Quick Summary
The Central Board of Indirect Taxes and Customs (CBIC) has assured the Indian Micro-Fertilizers Manufacturers Association (IMMA) and the Fertiliser Association of India (FAI) that a speedy refund mechanism will soon be notified to address challenges arising from the inverted duty structure faced by micronutrient manufacturers. At a meeting held on Friday at North Block, the CBIC chairman acknowledged industry concerns regarding the higher GST rate of 18% on inputs, which has created a mismatch
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FAQ :
The CBIC has assured a speedy refund mechanism to address challenges arising from the inverted duty structure faced by micronutrient manufacturers.
The industry is concerned about the inverted duty structure, where the GST rate on inputs (18%) is higher than on outputs, straining working capital and creating compliance hurdles.
The notification on refunds is expected to be issued alongside the upcoming GST 2.0 notification.
The CBIC stated that the matter of uniform GST treatment for all micronutrients listed under the Fertiliser Control Order would be referred to the Ministry of Agriculture for review.
No, the CBIC clarified that refunds for GST paid on stock-in-trade are not permissible under current law and must be adjusted against future tax liabilities.
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