Indian firms fear unprepared SME suppliers will hinder the GST rollout, risking input tax credits and causing cash flow issues.
Major Indian corporations, particularly those exceeding an annual turnover of INR 500 crores, have prepared extensively for GST implementation. Nevertheless, these large businesses express concern regarding the readiness of their small and medium-sized enterprise (SME) suppliers. A lack of compliance among these suppliers by the GST launch date could disrupt the smooth flow of Input Tax Credit (ITC) throughout the economy. This disruption might result in significant cash flow challenges during the initial phase of GST. This information was detailed in a report by Financial Express.
