The 56th meeting of the GST Council was held in New Delhi under the chairpersonship of the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman. The GST Council inter-alia made the recommendations relating to changes in GST tax rates, provide relief to individuals, common man, aspirational middle class and measures for facilitation of trade in GST.
The GST Council has approved a significant change to streamline refund processing for exporters and SEZ suppliers by recommending an amendment to Rule 91(2) of the CGST Rules, 2017. Under this reform, 90% of refund claims on account of zero-rated supplies will be sanctioned provisionally by the proper officer, based on risk identification and evaluation by the system.
The measure, set to be operationalized from 1st November 2025, will provide much-needed relief to exporters and suppliers to Special Economic Zone (SEZ) developers/units by ensuring faster access to working capital.
Key Features of the Reform
- 90% Provisional Refund: Eligible refund claimants for exports or SEZ supplies will receive most of their claim upfront.
- Risk-Based Evaluation: Refunds will be sanctioned after automated risk checks, reducing chances of fraudulent claims.
- Exceptions Allowed: In exceptional cases, where risk is high, the officer may withhold provisional sanction and conduct a detailed scrutiny, with reasons recorded in writing.
- Exclusions by Notification: Certain categories of taxpayers may be excluded from this benefit through official notification.
Benefits for Exporters & SEZ Suppliers
- Faster Refunds, Better Liquidity: Exporters and SEZ units will no longer face prolonged delays, easing working capital pressures.
- Boost to Ease of Doing Business: Automated risk-based processing minimizes manual intervention and promotes transparency.
- Encouragement to Exports: By aligning refunds with a streamlined risk-based approach, the move is expected to strengthen India's export competitiveness.
- Consistency in Refund Framework: The system is in line with recent Council recommendations for risk-based refunds under the inverted duty structure.
Click here to view the complete Press Release of the 56th GST Council Meeting
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