New Delhi, Aug. 18 -- India's proposed overhaul of Goods and Services Tax (GST) will speed up tax refunds for exporters, improve their cash flow, and streamline compliances for small businesses, as part of overall reforms meant to unlock the untapped potential of the economy, a central government official said on Saturday. India's efforts to make life easier for businesses, especially exporters, comes as they face headwinds in their largest market, the US, which has slapped additional tariffs of 50%, including a penal rate for New Delhi's energy trade with Russia. On Friday, talks between US President Donald Trump and Russian President Vladimir Putin remained inconclusive in deciding a ceasefire in the Russia-Ukraine war. "The GST overhaul will result in 90% of tax refunds getting issued very quickly, within two or three weeks," said the official, who spoke on the condition of anonymity. "While this will be for all taxpayers, exporters will benefit the most," the person said. Other than exporters, a large section of domestic businesses seeks refunds because of the inverted duty regime in sectors such as fertilizer and textiles where raw materials attract higher taxes than finished products. Prime Minister Narendra Modi had on Friday announced his government's commitment to have the GST reforms implemented by the coming festive season. The reforms include doing away with the 12% and 28% rates, and taxing most of the goods under these slabs at 5% and 18% respectively; reducing classification-related disputes, correcting inverted duty structures in specific sectors, ensuring greater rate stability, and enhancing ease of registrations, return filing and refunds. The reforms were conceived keeping in mind the need for making daily use goods for the middle-class and the poor cheaper, the official said. Prices of goods such as pasta, jam, and namkeen are likely to fall thanks to the lower tax rate. "Also, the idea is to make life easier for micro, small and medium enterprises (MSMEs) in terms of processes and compliance," the second official said. The tax restructure also will make the registration process also easier. The official said the most registrations will likely happen within three calendar days of applying. The GST restructuring, in spite of a short-term dent in revenue growth, will be fiscally sustainable as the increase in consumption demand and compliance will make up for the revenue forgone, the official said. The official also clarified that the GST compensation cess levied on products like tobacco, automobiles and carbonated drinks will likely be discontinued before March 2026 as soon as all debts and interest are paid. Sin goods such as tobacco are expected to be taxed at 40% under the new proposal. The central government is expected to complete repayment of the Rs.2.69 trillion raised from the market to give liquidity support to states during the pandemic, ahead of March. This cess ranges from 1% in the case of certain motor vehicles to 290% in the case of mixtures used in smoking pipes. A group of ministers led by Bihar deputy chief minister Samrat Chaudhary is currently studying the proposal. Once it is done, the GST Council will call its next meeting, the official said. GST reforms have been in the works for a couple of years....