New Delhi: Addressing the Inverted Duty Structure (IDS) challenge , arising from the latest rate revision exercise undertaken by the GST council , the Central Board Indirect Taxes & Customs (CBIC) has directed to release 90 per cent of the refund claims on provisional basis.

In a letter dated October 3, 2025, the Central Board Indirect Taxes and Customs (CBIC) has directed the principal and chief commissioners of central tax to sanction 90 per cent of the refund claim provisionally on a case-to-case basis, based on the evaluation of risk by the system.

In cases where provisional refunds are not permitted, the reasons is required to be recorded in writing, the body added.

The move addresses a major concern raised by manufacturers following the government’s rationalization changes

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