New GST rules to boost tax payments in cash

New GST rules to boost tax payments in cash ·          New GST rules restrict input tax credit for CGST and SGST unless credits for taxes on IGST are fully used ·          Experts said that although unintentional, the move to remove input tax credit is pinching businesses A new rule on businesses adjusting their final GST liability against credit for taxes already paid on raw materials and services is pushing up their tax payments made in cash, experts say. The amendments to central and state GST laws made in 2018 and brought into effect from February 2019 have the unintended consequence of certain tax credits getting piled up without getting used for meeting the final tax liability of businesses, they said. The amendments prescribe the order in which credits for past payment of various components of GST can be adjusted against the tax liability on the final output of a business....