GST Refunds On Low-Value Shipments To Benefit MSMEs, E-Commerce Exporters

ENA Economy 2025-09-05 15:50:29 New Delhi, Sep 5 (KNN) The Government of India has introduced a set of Goods and Services Tax (GST) rationalisation measures aimed at reducing costs, correcting duty-related distortions, and improving competitiveness across multiple sectors, including paper, leather, wood, handicrafts, commercial vehicles, tractors, food processing, textiles, toys, and packaging materials. A major relief for exporters came with the GST Councils decision to accept the Directorate General of Foreign Trades (DGFT) proposal to remove the value threshold for GST refunds on low-value consignments. The amendment to Section 54(14) of the Central GST Act, 2017, as outlined in the 56th GST Council meeting, will allow refunds for all exports made with payment of tax, irrespective of value. This change, long sought by small exporters, is expected to ease compliance, improve cash flows, and facilitate e-commerce exports routed through courier and postal services. The removal of this threshold is projected to significantly benefit micro, small, and medium enterprises (MSMEs) as well as individual sellers by enabling even low-value shipments to qualify for refunds. Industry observers noted that the reform could reduce working capital constraints, simplify documentation, and encourage greater participation of small businesses in global trade. Industry bodies have broadly welcomed the measures, highlighting the potential benefits of faster refunds, relief under the inverted duty structure, and rate reductions in key sectors. These steps are expected to alleviate liquidity pressures, strengthen supply chains, and support domestic manufacturing. Analysts also underlined that the rationalisation could enhance export competitiveness and help ensure that cost benefits are ultimately passed on to consumers. By correcting structural anomalies such as inverted duty structures in textiles and food processing, the reforms are designed to streamline refund procedures and improve liquidity. Officials have expressed confidence that the changes will promote Vocal for Local, strengthen Indias MSME ecosystem, and reinforce the countrys ambition to position itself as a global hub in manufacturing and exports. (KNN Bureau) 43398 https://knnindia.co.in/news/newsdetails/economy/gst-refunds-on-low-value-shipments-to-benefit-msmes-e-commerce-exporters 2025-09-05 15:50:29 knnindia.co.in GST Refunds On Low-Value Shipments To Benefit MSMEs, E-Commerce Exporters