India's GST Cuts Spark Working Capital Crisis - Whalesbook

### The Unintended Consequence: Blocked Working Capital The recent Goods and Services Tax (GST) rate rationalizations, designed to provide relief to consumers and stimulate demand, have unearthed a substantial liquidity challenge for Indian businesses. While the reduction in output GST rates successfully lowers the final price for end consumers, this move has exacerbated an existing structural iss…