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GST Council Approves 10-Day Refund Acknowledgement
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GST Council Approves 10-Day Refund Acknowledgement

October 9, 2026

The GST Council has approved a faster refund mechanism requiring 10-day acknowledgment and 90% provisional sanction based on risk profiling.

New Refund Mechanism to Expedite GST Refund Processing

The GST Council has approved a restructured refund mechanism mandating that refund applications be acknowledged within 10 days of filing. Furthermore, approximately 90% of refund claims will be processed provisionally based on a risk-based scrutiny model, significantly reducing processing delays.

The move targets long-standing industry grievances over delayed refunds, particularly for exporters and inverted duty structure claimants. By leveraging AI-driven risk assessment, the system will fast-track low-risk refunds while subjecting only high-risk claims to detailed examination.

Legal practitioners must now advise clients to maintain robust documentation to qualify under the low-risk category. The change is expected to improve cash flow predictability and reduce litigation in the refund domain under Sections 54 and 56 of the CGST Act.

Practice Areas:taxgst

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