Unlocking GST credits lying unutilised can release working capital to industry and give boost to economy

By ET CONTRIBUTORS | Updated June 29, 2020, 11.06AM IST

By Mahesh Jaising While GST has heralded a new regime of indirect taxation, it has also manifested the new system with inherent challenges, one of them being accumulation of input GST credit in the books of businesses, across sectors. The reasons can be varied and many; new projects, expansions, long gestation projects, pricing pressures, low net margins, slow moving

of getting supplier data to track and verify reporting of supplies. Introduction of the above measures would result in releasing blocked receivables by providing liquidity options to the GST credits lying in books, thereby improving working capital and reducing borrowing pressure for businesses; all with no government spends or bank interventions. (The writer is Partner, Deloitte India)

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