{
  "id": 12318427,
  "title": "GST Council May Expand Export Refund Rules On October 7, Over 38,000 Exporters Could Get Liquidity Boost",
  "url": "https://urgent.news/2026/10/06/gst-council-may-expand-export-refund-rules-on-october-7-over-38-000",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-06T05:51:00.000Z",
  "source": {
    "name": "Free Press Journal",
    "slug": "free-press-journal",
    "url": "https://www.freepressjournal.in/business/gst-council-may-expand-export-refund-rules-on-october-7-over-38000-exporters-could-get-liquidity-boost"
  },
  "original_language": "en",
  "account": "On October 7, the Goods and Services Tax (GST) Council may unveil substantial modifications to export refund rules, potentially unlocking working capital for over 38,000 exporters, according to a report by Moneycontrol. Currently, input taxes paid on services and plant and machinery remain locked, hindering exporters' access to much-needed liquidity. The proposed reforms would enable exporters to claim cash refunds on these input taxes, which would then be available as working capital. Refunds for plant and machinery would be distributed over a five-year period. The GST Council aims to expedite the refund processing system, with claims to be acknowledged within ten days, and around 90% of the refund amount to be released automatically after a risk assessment. Additionally, the system would automatically match export invoices with bank realizations. The reforms may also expand the classification of zero-rated exports, allowing supplies to overseas clients to qualify without the need for exporters to pay tax on such transactions. Furthermore, Indian businesses engaged in testing, repairing, or processing goods for overseas clients could benefit from a potential nil GST rate, currently charged at 18%. This change could provide significant relief to Global Capability Centres (GCCs), which are Indian units of multinational companies engaged in activities like engineering, product development, and testing for overseas entities. The proposed changes seek to alleviate blocked capital, streamline compliance, and enhance liquidity for India's export sector.",
  "summary": "The Goods and Services Tax (GST) Council is likely to announce significant changes to export refund rules on October 7, potentially releasing working capital for more than 38,000 export taxpayers. According to a report by Moneycontrol, under the proposed reforms, exporters could claim cash refunds on input taxes paid on services as well as plant and machinery. Currently locked-up tax credits…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}