Business Standard

Five years of GST: Recovery of input tax credit still a struggle

This ground report from Agra captures the overall sentiment that GST credit is like working capital for an MSME and it is increasingly getting stuck in the system

Agra MSMEs

Another issue is that while income tax allows for updated returns, where a person has the chance to correct an error, the same is not possible in the case of GST.

Arup Roychoudhury Agra
Agra has long been known for the Taj Mahal, but it is also a manufacturing hub filled with micro, small and medium enterprises (MSMEs) that make everything from electronic components to metal products, from paints and chemicals to footwear. And five years after the introduction of the Goods and Services Tax (GST), the MSMEs here complain that while the indirect tax regime has been transformative, cutting out the need to file multiple taxes, its biggest drawback has been the delay in credit refunds.

Whoever you speak to — MSME owners, tax lawyers, or industry bodies like the National Chambers of

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First Published: Jun 26 2022 | 7:06 PM IST

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