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04 May, 2017

Larger companies in India; especially those who have an annual turnover of more than INR 500 crores are all set for GST implementation. However, they are worried that their suppliers who are part of the SME ecosystem may not be as compliant, making transition difficult.

If all suppliers are not ready for GST by the go-live date, then it could impact the flow of ITC (input tax credit) in the economy, leading to cash flow problems in the initial days of GST.

As reported in Financial Express

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