GST Council delay prolongs working capital squeeze for FMCG, pharma, manufacturing

Postponement of the next GST Council meeting extends uncertainty for FMCG, pharma and manufacturing sectors. GST 2.0 rate rationalisation has deepened inverted duty structures, locking up refunds and working capital. Industry awaits legislative fixes, refund reforms and procedural clarifications.

— Source publishedMon, 18 May, 2026, 19:06 IST·First seen Mon, 18 May, 2026, 19:13 IST·Source BL · Consumer & Economy

What happened

Delay in next GST Council meeting prolongs uncertainty for FMCG, pharma, and manufacturing. Post GST 2.0 rate rationalisation has worsened inverted duty

Key facts

  • September 3, 2025
  • 3 working days
  • 90 per cent
  • 7 days
  • 21 days

Why this matters

Use the refund-induced cash strain as leverage in negotiations with mid-tier FMCG and pharma targets whose balance sheets are most exposed to stuck provisional refunds.

Also reported by