GST Council likely to recommend relief for sectors hit by inverted duty structure The GST Council is likely to consider a proposal to give relief to sectors such as textiles, fertilizers, leather, etc. that face difficulty due to the Inverted Duty Structure (IDS). IDS refers to higher duty on input and lower duty on output. Because of this inversion, the producer of such a good applies for a refund. However, getting a refund is not easy because of various reasons, such as calculation. Also, there have been litigations. At the same time, the affected industries face challenges of accumulating input tax credit (ITC), which becomes a cash flow burden for businesses as they are unable to utilize the credit effectively. The issue of IDS is also before the Group of Ministers (GoM), under the convenorship of Uttar Pradesh’s Finance Minister Suresh Kumar Khanna, looking into rate rationalisation. Though the group has yet to give its final report, it gave an interim report in ...
