Food Ministry forwards veg oil GST refund request to Finance Ministry
New Delhi, Aug 26 (PTI) The food ministry has forwarded the vegetable oil industry’s request to the finance ministry, seeking to lift tax refund restrictions with hopes that the GST Council will consider the issue at its next meeting, Food Secretary Sanjeev Chopra said on Tuesday.
“We have sent it to the Ministry of Finance…once this GST committee meets to work on the declaration about reduction in the rates. I am sure they will keep that in mind. Hopefully, it may take up in the next meeting,” Chopra told PTI.
The edible oil industry has been grappling with restrictions on Goods and Services Tax (GST) refunds for accumulated Input Tax Credit (ITC) under the inverted duty structure since July 2022, particularly impacting small and medium enterprises and domestic manufacturers.
Edible oils face a 5 per cent GST rate while input materials, including packaging, chemicals and processing equipment, attract higher rates of 12-18 per cent. This rate disparity previously allowed the industry to claim refunds on accumulated ITC until fiscal 2021-22.
The GST Council’s July 2022 restriction on accumulated ITC refunds has left companies with substantial unutilised tax credits.
