Procedural Changes in Indian GST Law: Impact on Working Capital Requirements of Indian Businesses

The seamless availability of the input tax credit is at the heart of the goods and services tax (GST) system. However, due to administrative challenges in implementing the GST, certain procedural changes have been made regarding provisional credit, offset rules and maximum credit restrictions which have affected the working capital requirements of Indian businesses. In this article, the author deliberates on these changes and reflects on their impact on the working capital requirements of Indian businesses.