Govt's Q&A on GST refund due to inverted duty rates is controversial

Para 4.26(ii) of FTP says that 'merchant exporter shall be required to mention name and address of supporting manufacturer of the export product on the export document viz. Shipping Bill/ Bill of Expo

We refer to your article ‘GST reforms: Festival cheer for consumers but many suppliers face IDR’ (BS-September 22, 2025). 

 

You have mentioned that ‘a controversial clarification from the government that has rattled dealers says that refunds due to IDR will not be available where input and output are the same’. Please let us know the reference of the clarification, why it is controversial and how, as traders, we should proceed?

 

The Q&A no.10 released on September 3, 2025, says that ‘refund of accumulated ITC in terms of clause (ii) of first proviso to section 54(3) of the CGST Act, is available