Good news for India’s small exporters and e-commerce businesses! The GST Council has approved a big change that will make life easier for those shipping low-value goods abroad. Now, exporters will be able to get GST refunds on exports made with payment of tax, no matter how small the shipment is.
This important update means that even tiny shipments sent through courier or postal services can now benefit from GST refunds. Previously, there was a minimum value threshold that blocked many small exporters from claiming refunds. With this change, all exports, regardless of their worth, will be eligible for refunds, helping exporters improve cash flow and reduce financial hurdles.
The government also announced a series of GST rate cuts and reforms across various sectors like paper, leather, textiles, handicrafts, food processing, toys, and packaging. These measures aim to lower costs, reduce duty-related issues, and boost competitiveness for Indian industries.
Lower GST rates on goods such as packaging materials, textiles, leather, and wood — now reduced from 12–18% to just 5% — will help manufacturers cut production costs. This means exporters can offer more competitive prices in global markets. Additionally, GST on trucks, delivery vans, and logistics services has been reduced from 28% to 18%, which will lower transportation costs and improve supply chain efficiency.
GST cuts on toys and sports goods from 12% to 5% are expected to encourage domestic manufacturing and reduce reliance on cheap imports, while also tapping into rising international demand. The government is also working on fixing technical issues like inverted duty structures in textiles and food processing, which will make GST refunds smoother and cash flows healthier.
These reforms are set to benefit small businesses and micro, small, and medium enterprises (MSMEs) by easing liquidity issues and making export procedures simpler. Faster refunds and lower taxes will help them grow, participate more actively in international trade, and strengthen India’s export sector.
Industry leaders have welcomed these steps, saying they will boost manufacturing, support MSMEs, and create a more competitive environment. The overall goal is to promote ‘Vocal for Local’ — supporting Indian products and industries — and position India as a global hub for textiles, auto parts, food, handicrafts, and more.
By making exports more cost-effective and streamlining processes, these changes will help Indian industries grow, support jobs, and ensure savings are passed on to consumers. It’s a big push towards making Indian exports more competitive worldwide!
—India Today, NDTV,
