Exporters to get 90% upfront refund only after GST law change
To operationalize the GST Council's decision for 90% upfront refunds to exporters, a legal amendment is needed. The current GST Act lacks provisions for risk-based provisional refunds, especially for industries with inverted duty structures. An ordinance is being considered to expedite the process, with the law committee examining the required changes and defining "risky taxpayers."
The decision to allow 90% upfront refund for exporters under the goods and services tax (GST) framework may take time to be operationalised as the proposed revamp of the refund mechanism would require a change in the law.
