GST Council allows refunds for businesses with inverted duty structures
Big update from the GST Council: Businesses stuck with inverted duty structures can soon get refunds on input services (from November 2026) and plant and machinery (from April 2027).
The goal is to help companies actually use their accumulated tax credits over five years, making cash flow a bit easier.
GST Council expands credits and protections
A fresh committee will suggest ways to better protect genuine buyers who hold a proper invoice, have received the goods and have paid their suppliers in full, with the committee to complete its study within three months and an agenda to be placed before the next Council meeting.
Plus, businesses can now claim GST credits on things like GST paid on health and life insurance taken for employees, telecom towers, pipelines outside factories, free samples, and stock written off after expiry of shelf life where a law requires the goods to be destroyed.
There are also tweaks to avoid double taxation: think hotel accommodation costing up to ₹7,500 a night booked through an agent and catering services within the same industry.