The Federation of Indian Export Organisations (FIEO) has welcomed the GST Council’s recent reform measures, calling them a crucial step towards easing exporters’ liquidity constraints and ensuring faster refund disbursals.

The GST Council has approved releasing export refunds within seven days based on risk analysis, along with provisional refunds under the inverted duty structure for key sectors such as textiles, pharmaceuticals, chemicals, and fertilizers. FIEO President SC Ralhan said the move would significantly reduce working capital blockages and provide timely relief to exporters.

“Faster refunds will not only strengthen India’s export sector but also ease pressure on supply chains, which in turn supports domestic manufacturing and consumption. These measures will create a positive multiplier effect across the economy, benefitting both industry and consumers,” Ralhan said.

Boost for Small and E-Commerce Exporters

The decision to allow GST refunds below ₹1,000 is expected to particularly benefit small businesses and e-commerce exporters, who often face operational difficulties due to delayed reimbursements. According to FIEO, this measure addresses a long-standing demand from smaller players who are critical to India’s trade ecosystem.

Ralhan emphasized that exporters are committed to passing on the benefits of reduced costs wherever the final product reaches domestic consumers. “Industry will ensure that savings from lower tax burdens are reflected in prices, thereby supporting the domestic economy while also enhancing India’s global competitiveness,” he noted.

The reforms come at a time when global trade faces significant headwinds, including slowing demand, supply chain disruptions, and geopolitical uncertainty. FIEO lauded the Council’s responsiveness to industry concerns, describing the measures as timely interventions that will help Indian exporters navigate a volatile international market.

Industry analysts believe that faster refunds and a smoother tax credit mechanism will improve cash flows, enabling exporters to meet orders without the stress of blocked capital. This could also encourage greater participation of micro, small, and medium enterprises (MSMEs) in global trade, sectors that often struggle with compliance burdens.

Positive Outlook for Export Ecosystem

FIEO expressed confidence that the reforms will bolster India’s trade resilience, supporting both outbound shipments and domestic demand. The organisation reiterated that a robust export ecosystem naturally stimulates manufacturing, jobs, and consumption, creating a virtuous economic cycle.

With the Council’s reforms now in motion, exporters are optimistic about a more efficient refund framework that reduces uncertainty and strengthens their ability to compete internationally. 

As Ralhan concluded, “The GST Council has addressed critical pain points for exporters. By ensuring timely refunds and easing working capital stress, these measures will reinforce India’s position as a reliable global trading partner.”

Powered by Froala Editor

FIEO GST Council Reforms Export Refunds Liquidity Relief Inverted Duty Small Exporters E commerce Trade Indian Exports Global Competitiveness