Inverted duty fix is next on Centre’s GST agenda

GST Council to expand work on fixing anomaly at next meet

- Gireesh Chandra Prasad

In 2021, the Centre estimated annual refund claims on account of inverted duty structure at about ₹30,000 crore.

(PTI)

After slashing goods and services tax (GST) rates in September, the Centre and states are now gearing up to fix the tax system’s next fault line: inverted duty structures.

The GST Council has set its eyes upon correcting the anomaly across a range of industries including select railway parts, metal ores and concentrates, as well as products like water pumps, two people familiar with the matter said on the condition of anonymity. The Council will also take another look at textiles, where the duty inversion was partially addressed on September 3, along with fertilisers and bicycles.