Rajiv Nath emphasised that GST 2.0 should complete manufacturing by including input services and capital goods in the refund process
The Association of Indian Medical Device Industry (AiMeD) has welcomed the Government of India’s latest step to speed up GST refunds for exporters and manufacturers. The new system, announced by the Central Board of Indirect Taxes and Customs (CBIC), allows 90 per cent of the refund amount to be released quickly in all low-risk cases.
This move will make it much easier for companies to recover their tax refunds without incurring long delays. It applies to all refund applications filed on or after October 1, 2025 and covers both exports and inverted duty structure (IDS) cases, where the tax on raw materials is higher than the tax on the final product.
“This is a very welcome and practical step by the Finance Ministry and CBIC,” said Rajiv Nath, Forum Coordinator, AiMeD.
“Many Indian manufacturers, especially MSMEs, have experienced working-capital constraints as a result of delayed GST refunds. With the current approach of releasing 90 per cent of refunds upfront for low-risk taxpayers, cash-flow challenges may be alleviated,” he said.
Nath emphasised that GST 2.0 should complete manufacturing by including input services and capital goods in the refund process. Modern supply chains rely on spending on technology, machinery, logistics, rentals, and specialised services.
