This November, two silent GST moves could quietly rewrite the rules for businesses
From November 1, 2025, taxpayers with an inverted duty structure—where input GST is higher than output GST—will be eligible for 90% provisional refunds on unutilised input tax credit (ITC).
- Sep 13, 2025,
- Updated Sep 13, 2025 7:10 AM IST
While headlines focus on GST rate cuts, two silent but sweeping changes are set to hit taxpayers this November—faster refunds for inverted duty structures and a radically simpler registration process.
Sujit Bangar, founder of TaxBuddy.com, flagged the twin shifts in a LinkedIn post, calling them “game-changing” for working capital management and compliance ease.
From November 1, 2025, taxpayers with an inverted duty structure—where input GST is higher than output GST—will be eligible for 90% provisional refunds on unutilised input tax credit (ITC). These refunds will be processed based on risk profile, with the remaining 10% cleared after verification. Officers can withhold refunds only in exceptional cases, and must document reasons.
This is a marked departure from the current system, which relies heavily on manual scrutiny and offers no guaranteed timelines. Bangar illustrated the shift using a solar lamp manufacturer as an example: input GST totals ₹3,840 while output GST is only ₹2,000, leaving ₹1,840 in unclaimed ITC. Under the new system, ₹1,656 (90%) would be refunded almost immediately, improving cash cycles.
A second reform will make GST registration easier for low-risk businesses. Firms with monthly B2B output tax under ₹2.5 lakh will qualify for automated registration approval within 3 working days. Manual checks and site visits will be eliminated for these applicants, which the government estimates make up 96% of new registrations.
The new process also allows opt-in/opt-out flexibility, aiming to accelerate onboarding for startups and MSMEs.
“These changes may not make headlines, but they’ll make balance sheets breathe easier,” Bangar wrote.
While headlines focus on GST rate cuts, two silent but sweeping changes are set to hit taxpayers this November—faster refunds for inverted duty structures and a radically simpler registration process.
Sujit Bangar, founder of TaxBuddy.com, flagged the twin shifts in a LinkedIn post, calling them “game-changing” for working capital management and compliance ease.
From November 1, 2025, taxpayers with an inverted duty structure—where input GST is higher than output GST—will be eligible for 90% provisional refunds on unutilised input tax credit (ITC). These refunds will be processed based on risk profile, with the remaining 10% cleared after verification. Officers can withhold refunds only in exceptional cases, and must document reasons.
This is a marked departure from the current system, which relies heavily on manual scrutiny and offers no guaranteed timelines. Bangar illustrated the shift using a solar lamp manufacturer as an example: input GST totals ₹3,840 while output GST is only ₹2,000, leaving ₹1,840 in unclaimed ITC. Under the new system, ₹1,656 (90%) would be refunded almost immediately, improving cash cycles.
A second reform will make GST registration easier for low-risk businesses. Firms with monthly B2B output tax under ₹2.5 lakh will qualify for automated registration approval within 3 working days. Manual checks and site visits will be eliminated for these applicants, which the government estimates make up 96% of new registrations.
The new process also allows opt-in/opt-out flexibility, aiming to accelerate onboarding for startups and MSMEs.
“These changes may not make headlines, but they’ll make balance sheets breathe easier,” Bangar wrote.