India revises GST rules to count contract manufacturing as exports
Big changes are coming to India's GST rules from April 2027. Contract manufacturing for foreign principals will now count as exports, making India more appealing for global supply chains.
Plus, manufacturers can claim tax refunds on input services and capital goods, with a speedy process that returns 90% of refunds within three working days from claim acknowledgement, meaning faster cash flow and fewer financial headaches.
Manufacturers get 5-year monthly machinery refunds
Manufacturers get monthly tax refunds on machinery over five years, freeing up money that could boost investments or even create new jobs.
Experts say these updates will turn stuck tax credits into useful capital and offer simpler procedures, giving businesses more certainty and making India an even hotter spot for international investment.