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.
In a major relief for small exporters, the GST Council has recommended an amendment to Section 54(14) of the CGST Act, 2017 to remove the threshold limit for GST refunds on exports made with payment of tax.
What Has Changed?
Currently, exporters face restrictions in claiming GST refunds on low-value consignments, particularly when exports are routed through courier services or postal channels. This has been a long-standing concern for small businesses, artisans, and startups who rely on these modes for sending goods abroad.
With the recommended amendment, exporters will now be able to claim refunds without any threshold limitation, ensuring that even small-value shipments receive equal treatment under the GST framework.
Benefits for Small Exporters
- Level Playing Field: Small exporters, including those sending consignments via courier and post, will now enjoy the same refund benefits as large exporters.
- Cash Flow Relief: Timely refunds will ease liquidity challenges for MSMEs, handicraft sellers, and e-commerce exporters.
- Boost to Global Reach: The move is expected to encourage more small traders to explore international markets without fear of losing working capital.
- Support to Make in India & Digital India: Facilitates growth of cross-border e-commerce, benefitting entrepreneurs who ship products directly to global customers.
Click here to view the complete Press Release of the 56th GST Council Meeting
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