GST

CBIC Rolls Out Provisional GST Refund Scheme from October 1, 2025

The CBIC has rolled out a provisional refund mechanism allowing eligible businesses to receive 90% of their GST refunds upfront from October 1, 2025. This move targets industries facing cash flow issues due to inverted duty structures and aims to accelerate business operations and growth.

Great news for manufacturers and exporters! The tax department (CBIC) has introduced a faster refund process that will put money back into your business quicker.

What's New?

From October 1, 2025, businesses can now get 90% of their GST refund immediately without waiting for the complete verification process. This new facility is now active and available for eligible taxpayers.

Who Benefits Most?

Textiles – Garment and fabric manufacturers
Footwear – Shoe and leather goods makers
Fertilizers – Agricultural input suppliers

These sectors often face a situation where they pay more tax on raw materials than they collect on final products. This creates a cash crunch, and refunds take time.

How Does It Work?

Think of it like an advance payment:

File your refund claim as usual
Low-risk cases get 90% instantly – The system automatically checks and approves
Remaining 10% comes later – After full verification is complete

It works just like the current refund system for exporters, so the process is smooth and automated.

Why This Matters

Better Cash Flow – No more waiting months for your money
Less Financial Stress – Use the refund to buy materials and run operations
Faster Business Growth – More working capital means you can take on new orders

Who Can't Apply?

Some businesses are excluded from this quick refund:

Pan masala and tobacco sellers
Areca nut suppliers
Essential oil traders
Cases with ongoing disputes or tax notices

The Bottom Line

This facility has just been rolled out and is a temporary relief measure while permanent changes are being worked out. It's a welcome step that will help thousands of businesses manage their working capital better.

Pro Tip: Keep your GST records clean and filings up-to-date to qualify as "low-risk" and get your refunds faster!

This facility went live on October 1, 2025. Check with your CA or tax consultant to see if your business qualifies and start claiming your refunds today!

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Note-All the aforementioned information in the article is taken from authentic resources and has been published after moderation. Any change in the information other than fact must be believed as a human error. For queries mail us at marketing@myitronline.com

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Krishna Gopal Varshney

An editor at apnokaca

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Krishna Gopal Varshney, Founder & CEO of Myitronline Global Services Private Limited at Delhi. A dedicated and tireless Expert Service Provider for the clients seeking tax filing assistance and all other essential requirements associated with Business/Professional establishment. Connect to us and let us give the Best Support to make you a Success. Visit our website for latest Business News and IT Updates.

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