The GST Council may consider further changes to small refund claims and risk-based provisional payments at its October 8 meeting. The proposals could improve access to eligible refunds, but the 90% provisional refund mechanism is already part of the GST administration for qualifying claims.

Reports indicate that the ₹1,000 minimum refund threshold could be assessed across tax heads together rather than separately. That proposal should be distinguished from allowing every historic credit balance to be withdrawn: a balance must fall within a legally available refund category.

Buy Now: 160+ GST E-Magazine September 2026

The Council’s official October 2025 newsletter records the introduction of risk-based provisional sanction under Rule 91(2). It also describes an interim arrangement allowing 90% provisional sanction for eligible inverted duty refund applications filed on or after October 1, 2025.

Financial Express has reported that the upcoming meeting may consider statutory backing for the inverted duty arrangement. The potential development is therefore an extension or strengthening of an existing mechanism, rather than the first introduction of 90% provisional refunds.

Provisional sanction also differs from final approval. Risk classification, statutory exclusions and subsequent verification remain relevant. The official instructions allow detailed examination in specified circumstances, including exceptional cases supported by recorded reasons.

As an illustration of the cash-flow effect, an eligible claimant receiving most of a refund provisionally can use that money while the remaining amount undergoes verification. That does not establish a right to payment of the entire amount originally claimed.

For smaller claims, the final rules will need to explain aggregation, the treatment of earlier applications and any applicable time limits. Excess cash in the electronic cash ledger and accumulated credit in the electronic credit ledger also require different legal treatment.

The eventual recommendation should be read alongside existing provisions so that businesses can identify what changes, what is already available and which claims remain subject to scrutiny.

Read More: GST Notices Below Rs. 10K May Be Curbed, with Relief for Pending Disputes: 57th GST Council Meet