New Delhi, Nov. 5 -- The faster processing of GST refunds under the new reforms could ease working capital pressures on micro, small and medium enterprises (MSMEs), particularly exporters who often have to finance production and customer credit while waiting for tax refunds, the Federation of Indian Micro and Small & Medium Enterprises (FISME) said.

The industry body highlighted that delayed refunds can force otherwise profitable businesses to borrow money to meet routine expenses, limiting their ability to take up additional orders and expand production.

For small exporters, the pressure is particularly significant as they must finance raw materials, production and credit extended to overseas buyers while their tax refunds remain pendi...