But in practice, whenever the tax rate on inputs is higher than the tax rate on outputs, businesses run into what’s called an Inverted Duty Structure (IDS). From 1st November 2025, 90% of IDS refunds will be released provisionally, giving businesses much-needed liquidity without long waits. Legal Foundation for IDS RefundsThe right to refunds isn’t a matter of discretion; it’s firmly rooted in law:Section 54(3)(ii), CGST Act : Allows refunds where input tax exceeds output tax. : Allows refunds where input tax exceeds output tax. Now, with the added relief of 90% provisional refunds from 1st November 2025, businesses finally have a workable path forward.