Archive · 22 Aug 2025
IVPA Seeks GST Refunds for Edible Oils to Aid MSMEs
The Indian Vegetable Oil Producers’ Association (IVPA) wants the government to give them back some money from taxes they paid.
They're asking for GST refunds because the current system makes it hard for them to get money back on things they buy.
Edible oil is taxed less than the things they use to make it, so they end up paying more taxes than they can get back.
They say this hurts small and medium businesses, might make prices go up for consumers, and could lead to less safe oil being sold.
The IVPA wants the government to change the rules so they can get their refunds, like they used to.
IVPA seeks GST refunds to support MSMEs and local manufacturers.
GST Council restricted refunds on accumulated ITC under the inverted duty structure (IDS) since July 2022.
Edible oil is taxed at 5%, but inputs attract 12-18% GST, leading to unutilized ITC.
IVPA warns that blocked refunds cause working capital shortages and may increase consumer prices.
IVPA requests parity with other essential edible consumables, such as butter and ghee.
- Who
- Indian Vegetable Oil Producers’ Association (IVPA), MSMEs, Consumers, Government and GST Council.
- What
- The Indian Vegetable Oil Producers' Association (IVPA) is seeking GST refunds on edible oils.
- When
- Since July 2022, GST Council has restricted refund of accumulated ITC.
- Where
- Not explicitly stated.
- Why
- To support MSMEs, ensure healthy cash flows, and prevent rising consumer prices.
IVPA/Edible Oil Industry
N/A
ITC Refunds
IVPA/Edible Oil Industry
Refund of accumulated ITC under the inverted duty structure (IDS) is essential for industry competitiveness and healthy cash flows.
N/A
N/A
Parity
IVPA/Edible Oil Industry
Edible oils should be treated on par with essential consumables like butter and ghee.
N/A
N/A
- Organization
- Indian Vegetable Oil Producers’ Association (IVPA)
- Issue
- GST refunds for edible oil producers
- GST Rate (Edible Oil)
- 5%
- GST Rate (Inputs)
- 12-18%
- Restriction on Refunds
- July 2022 by GST Council
- Impact
- Working capital shortage, potential price increase
Sources
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