India's GST System: SMEs Face Working Capital Squeeze Amid Bottlenecks - Whalesbook

The 180-Day ITC Hurdle Section 16 of the GST Act, which mandates the reversal of Input Tax Credit (ITC) if payment to a supplier is not made within 180 days, is a primary source of contention. This provision is seen by many as an intrusion into commercial decisions, leading to disputes over quality, performance, or other payment-related issues. Businesses argue that the government's GST collection…