CBIC Orders 90% Provisional Refunds For Inverted Duty Structure Claims from 1 Oc ...
The Central Board of Indirect Taxes and Customs (CBIC) has directed its field formations to sanction 90 per cent of refund amounts on a provisional basis for inverted duty structure (IDS) refund applications filed on or after 1 October 2025.The move is aimed at easing working capital constraints and mirrors the existing provisional refund mechanism available for zero-rated supplies. The system will operate through automated risk identification and evaluation to ensure faster processing while maintaining compliance safeguards.
Officials said the decision is expected to provide immediate liquidity relief to industries such as textiles, footwear and fertilizers. These sectors were most affected by the inverted duty regime, where input tax exceeds output tax.
Earlier this month, the GST Council had announced the upfront release of 90 per cent refunds for exporters as part of a broader package of tax reforms introducing a two-slab structure.
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