GST refund pendency drops sharply, easing working-capital pressure for exporters
As of March 31, 2026, only 64 GST refund claims worth about Rs 164 crore were pending for 60–90 days, while 110 claims worth Rs 64 crore were pending beyond 90 days. Automated IGST export refunds and faster provisional refunds are improving cash-flow timelines.
What happened
GST refund pendency has fallen sharply, with 64 claims pending 60-90 days and 110 pending beyond 90 days as of March 31, 2026. Automated IGST export refunds and
Key facts
- 64 refund claims worth about Rs 164 crore pending for more than 60 days up to 90 days as of March 31, 2026
- 110 claims worth Rs 64 crore pending for more than 90 days as of March 31, 2026
- 907 claims worth Rs 274 crore pending 60-90 days at FY24-end
- 1,592 claims worth Rs 696 crore pending over 90 days at FY24-end
- 90% provisional refund for zero-rated supplies can be sanctioned within 7 days of acknowledgement
Why this matters
For acquisitions or partnerships involving export-heavy businesses, lower refund pendency improves cash-flow reliability and may reduce working-capital adjustments in valuation and deal structuring.
What to watch
- Monthly GST refund pendency data, especially claims outstanding beyond 90 days.
- Whether the faster clearance extends from IGST export refunds to accumulated input-tax-credit and inverted-duty claims.
- Working-capital days, short-term debt and interest-cost trends in export-heavy retail, apparel, footwear, gems, electronics and consumer-goods companies.
- GST portal outages, audit flags, invoice mismatches or new verification rules that could slow refund processing.
- Export order growth and discounting trends, which determine whether cash-flow gains translate into margins or competitive pricing.
- Exporters may reduce short-tenor working-capital borrowings and bank-limit utilization.
- Retailers sourcing export-linked merchandise may place earlier and larger orders ahead of festive and international selling seasons.
- Companies may shorten supplier-payment cycles or seek early-payment discounts, improving supply-chain resilience.
- Managements may guide to lower finance costs, better operating cash flow and reduced working-capital intensity in FY27.
- Smaller exporters may formalize GST documentation and shift more shipments to processes eligible for automated IGST refunds.