The GST Council is considering relief for sectors facing difficulty due to the Inverted Duty Structure (IDS), which refers to higher duty on input and lower duty on output. This leads to challenges in getting refunds and accumulating input tax credit, affecting industries like textiles, fertilizers, and leather. The Group of Ministers is also looking into rate rationalization to address this issue. Correcting the inversion would help domestic manufacturers utilize tax credit on inputs and benefit consumers. The Council has previously addressed this issue and is expected to provide clarity on refunds for certain sectors.
Source A2ztaxcorp
