Input tax credit (ITC) crisis brewing, profitability, and cash flow under threat
Trade and industry bodies could lose a huge amount of input tax credit (ITC), which could hit their profitability and cash flow if they fail to match their ITC claims under goods and services tax (GST) with the returns filed by vendors by tomorrow.
Rajeev Dimri, partner, Deloitte Touche Tohmatsu India LLP, said the loss of ITC due to mismatch of invoices could be a significant number. “Even if we deal with a fraction of ITC claims, it is a large amount of money”. Image Source: Reuters