GST 2.0: CBIC Promises Quick Refunds to Address Inverted Duty Structure for Fertilizer Industry

Last updated: 16 September 2025


Quick Summary
The Central Board of Indirect Taxes and Customs (CBIC) has promised the Indian Micro-Fertilizers Manufacturers Association and the Fertiliser Association of India that a new, faster refund system for GST will be introduced soon. This aims to resolve issues caused by the 'inverted duty structure', where taxes on raw materials are higher than on finished products, particularly affecting micronutrient manufacturers. The CBIC also indicated that the Ministry of Agriculture will review the call for uniform GST treatment on all micronutrients.

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
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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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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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