By M Pandiyan For exporters and industries such as pharmaceuticals textiles and electric vehicles (EVs), GST refunds are no merely a tax matter. They are a critical source of working capital, particularly in sectors affected by inverted duty structures where GST paid on inputs exceeds GST collected on outputs. While GST has significantly improved compliance through digitisation and standardised processes, obtaining refunds remains a challenge. Businesses often face extensive documentation requirements, multiple verification checks and prolonged processing timelines. Delayed refunds lead to blocked tax credits, tighter cash flows and higher financing costs, affecting competitiveness and investment decisions.