India's GST refund reforms to speed up payments for exporters and key industries

India is proposing major GST refund reforms to address delayed payments that block working capital for exporters and industries like pharmaceuticals, textiles and EVs, with automated processing and faster timelines planned. The changes follow the September 2025 rate rationalisation that increased inverted duty structures and unutilised input tax credits. A June 2026 Deloitte survey and 57th GST Council recommendations back technology-driven verification, reducing refund acknowledgement timelines from 15 to 10 days, and allowing provisional access to 90% of refunds earlier. The refund formula would also include input services and capital goods, while eligibility expands to merchant exporters, export debit notes and electricity exports. Automated processing will phase in starting with low-risk claims, using risk indicators to minimise officer intervention. Greater integration with EDPMS, SEZ Online and EDF platforms aims to cut documentation, with the goal of transforming refunds into a business-friendly hallmark supporting investment and competitiveness.