The New GST Refund Framework: 90% Upfront Payouts and Portal Enhancements Explained
公開 2026/01/19 14:22
最終更新
-
When I started consulting for a textile manufacturer in Surat back in 2024, their biggest nightmare wasn't production delays or raw material costs—it was trapped working capital. Over ₹12 lakh stuck in unutilized Input Tax Credit (ITC) due to inverted duty structure, waiting months for GST refund processing. Fast forward to today, and the landscape has transformed dramatically.
The new GST refund framework represents one of the most significant reforms in India's indirect tax system since GST's inception in 2017. With 90% provisional refunds now available upfront and sweeping portal enhancements rolled out throughout 2025, businesses finally have a viable solution to their chronic cash flow challenges.
Understanding the New GST Refund Framework
The Government of India, through the GST Council's recommendations, has introduced a revolutionary refund mechanism effective November 1, 2025. This framework fundamentally changes how businesses claim and receive GST refunds, particularly for inverted duty structure cases and export-related claims.
What Makes This Framework Different?
The traditional GST refund process required businesses to wait 60 days or more for complete refund processing. Under the new system, 90% of the claimed refund amount gets credited directly to taxpayers' bank accounts without waiting for full audit completion. The remaining 10% follows after detailed verification by tax officers.
In my experience working with over 50 manufacturing units across Gujarat and Maharashtra, this single change has revolutionized working capital management. One footwear manufacturer I advised in December 2025 received ₹8.1 lakh (90% of their ₹9 lakh claim) within seven days of filing—money that previously would have taken three to four months.
The 90% Provisional Refund Mechanism Explained
How the Upfront Payout Works
The provisional refund mechanism operates through a risk-based assessment system. Taxpayers receive 90% of refund claims automatically based on system-driven risk identification and evaluation, with the remaining 10% processed after verification.
Step-by-Step Process:
The new GST refund framework represents one of the most significant reforms in India's indirect tax system since GST's inception in 2017. With 90% provisional refunds now available upfront and sweeping portal enhancements rolled out throughout 2025, businesses finally have a viable solution to their chronic cash flow challenges.
Understanding the New GST Refund Framework
The Government of India, through the GST Council's recommendations, has introduced a revolutionary refund mechanism effective November 1, 2025. This framework fundamentally changes how businesses claim and receive GST refunds, particularly for inverted duty structure cases and export-related claims.
What Makes This Framework Different?
The traditional GST refund process required businesses to wait 60 days or more for complete refund processing. Under the new system, 90% of the claimed refund amount gets credited directly to taxpayers' bank accounts without waiting for full audit completion. The remaining 10% follows after detailed verification by tax officers.
In my experience working with over 50 manufacturing units across Gujarat and Maharashtra, this single change has revolutionized working capital management. One footwear manufacturer I advised in December 2025 received ₹8.1 lakh (90% of their ₹9 lakh claim) within seven days of filing—money that previously would have taken three to four months.
The 90% Provisional Refund Mechanism Explained
How the Upfront Payout Works
The provisional refund mechanism operates through a risk-based assessment system. Taxpayers receive 90% of refund claims automatically based on system-driven risk identification and evaluation, with the remaining 10% processed after verification.
Step-by-Step Process:
