Page 22 - NIS English 01-15 October, 2025

COVER STORY | New GST Reforms of New India

New reforms to strengthen

Aatmanirbhar Bharat

GST should not only be simple but also be beneficial for the people. With this
announcement from the ramparts of the Red Fort, Prime Minister Modi laid the
foundation for the biggest GST reforms so far by connecting three pillars – ensuring that
the benefits directly reach the common people, farmers, the middle class, and MSMEs.
At the same time, for a nation moving forward on the path of a Viksit and Aatmanirbhar
Bharat, this reform has emerged as a strong pillar in itself....

Structural Reforms

n Structural changes includes converting four slab rates to to grant provisional refund (equal to 90% of the
two slab rates , correction of inverted duty structure in claim amount) in refund claims filed on account of
two core sectors - manmade textile sector and fertilizers inverted duty structure to taxpayers identified by the
and sector wise rationalisation of rates to resolve system based on risk evaluation.
classification disputes.
n Rules will be amended to provide for sanction of
n The problem of inverted duty structure has provisional refund equal to 90% of the amount
been addressed for man made textile sector and claimed as refund on account of zero rated supply
fertilizers. Refunds for compliant taxpayers will of goods or services or both, by the proper officer
be available easily, and working capital will not on the basis of identification and evaluation of risk
be stuck. The GST law will be amended so that by the system.
90% of the amount claimed as refund of the n Clarity in classification of goods and services, so that
accumulated input tax credit arising due to rate confusion and disputes regarding tax are reduced.
of tax on inputs being higher than the output
(commonly known as ‘’inverted duty structure’’), n Stable tax policy for industries for the long term, so
can be given on a provisional basis, pending that they can plan better.
detailed scrutiny of the refund claim. Until the n The Goods and Services Tax Appellate Tribunal
law is amended, the CBIC shall facilitate the (GSTAT) will be operational by December 2025.
taxpayers by issuing instructions to its officers

Benefit

This will make tax calculation easier, reduce disputes,
and make it easier for businessmen to follow the rules.
Any dispute can be easily resolved through the tribunal.

20 NEW INDIA SAMACHAR || October 1-15, 2025