Quick Summary
The government's landmark decision to allow 90% upfront refunds for exporters under GST may take longer to roll out, as it requires a change in the law. Officials said the Centre is considering promulgating an ordinance to fast-track the implementation, while the law committee under the GST Council has been tasked with examining the proposal. Earlier this month, the GST Council announced upfront release of 90% refunds on a provisional basis as part of the new two-slab GST structure. The move wa
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FAQ :
The government plans to allow exporters to receive 90% of their GST refunds upfront on a provisional basis.
The current GST law, specifically Section 54 of the Central GST Act, does not allow for risk-based provisional refunds, requiring a legal amendment.
The Centre is considering promulgating an ordinance to amend the law quickly, rather than waiting for a Parliament session.
Sectors such as textiles, chemicals, fertilisers, and pharmaceuticals, which often have an inverted duty structure and face liquidity pressures, are expected to benefit significantly.
The reform is expected to ease working capital constraints, boost competitiveness, encourage compliance, and strengthen India's trade environment.
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