CBIC promises faster GST refunds for micronutrient manufacturers

CBIC assures micronutrient makers of faster GST refunds to offset inverted duty structure, while ruling out refunds on dealers' stock-in-trade under current law

The Central Board of Indirect Taxes and Customs (CBIC) has assured the Indian Micro-Fertilizers Manufacturers Association (IMMA) and the Fertiliser Association of India (FAI) that a speedy refund mechanism will soon be notified to address concerns over the inverted duty structure faced by micronutrient manufacturers.

 

At a meeting held on Friday at North Block, the CBIC chairman acknowledged industry concerns over the higher goods and services tax (GST) rate of 18 per cent on inputs. He said a notification on refunds would be issued alongside the GST 2.0 notification.

 

IMMA also pressed for uniform GST treatment for all micronutrients covered under the Fertiliser Control Order (FCO). The CBIC noted the representation and said the matter would be referred to the Ministry of Agriculture for further action.

 

On dealers’ demand for refunds of GST paid on stock-in-trade, the Board clarified that such refunds are not permissible under law and must instead be adjusted against future liabilities.

 

The industry bodies further sought a level playing field in GST treatment of notified micronutrients across manufacturers, traders, and importers. The Board reaffirmed that the current inverted duty structure would continue as long as multiple GST rates remain in place.