Industry Seeks ITC Use for Reverse-Charge GST Ahead of Council Meet
· Business · Business Standard
Industry representatives have approached the GST Council to allow the utilisation of input tax credit for paying tax under the reverse-charge mechanism. The proposal is set for discussion ahead of the upcoming GST Council meeting scheduled for October 7. Currently, businesses must make cash payments for reverse-charge liabilities without offsetting available input tax credit balances. Stakeholders argue that this restriction creates working capital bottlenecks and increases compliance friction. The upcoming meeting will evaluate whether to ease these input tax credit norms for companies across sectors.
Why it matters
Allowing input tax credit usage for reverse-charge GST would directly ease cash flow constraints for businesses across manufacturing and service sectors by reducing immediate cash outflows.
Read the original report — Business Standard
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