MSMEs need to become tech-forward to avail full ITC under GST

At the 38th GST Council meeting, the Central Board of Indirect Taxes and Customs (CBIC) decided that total unmatched credit cannot exceed 20 percent of input tax credit (ITC) available in GSTR 2A. This announcement is likely to adversely impact MSMEs in terms of their cash flows given their reliance on select vendors and suppliers. Larger enterprises, on the other hand, will be better cushioned ag…