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GST Council To Offer Cash Refunds To Over 38000 Exporters
M
Moneycontrol•06-10-2026, 23:45
GST Council To Offer Cash Refunds To Over 38000 Exporters
- •The GST Council is expected to expand refund rules to cover services and heavy machinery, providing a major liquidity boost to over 38,000 exporters.
- •Input tax credits for plant and machinery will be refundable over a five-year period, freeing up trapped capital for working use.
- •New automated rules will acknowledge refund claims within 10 days and immediately release 90 percent of the claim based on risk checks.
- •Exports billed through foreign branches and work done on goods for foreign clients may be reclassified as zero-rated or tax-free.
Key Questions Answered
The GST Council is expected to allow over 38,000 exporters to claim cash refunds on input taxes paid for services and heavy machinery, spreading the machinery refund over five years to boost working capital.
Under the proposed rules, the system will acknowledge refund claims within 10 days, automatically releasing 90 percent of the claim based on risk checks while the remainder is paid after verification.
The condition requiring that a supplier and recipient not be establishments of the same person will be removed, allowing supplies routed through an exporter's own foreign branch to qualify as zero-rated exports.
