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Outward GST Liability

ITC / Input 400 views 1 replies

We are having tea gardens and an huge output tax liability without much input tax credit.

Is there any alternative to work on cash flow

Replies (1)

Yes, there are alternatives to manage cash flow with a huge output tax liability and limited input tax credit:

1. *Apply for a refund*: If you have excess output tax liability, you can apply for a refund.

2. *Adjust against future liabilities*: You can adjust the excess output tax liability against future tax liabilities.

3. *Opt for a GST deferment scheme*: Some states offer GST deferment schemes, allowing you to pay GST in installments.

4. *Explore input tax credit optimization*: Review your supply chain and procurement processes to optimize input tax credit.

5. *Consider a working capital loan*: If you have a cash flow shortage, consider a working capital loan.

6. *Negotiate with suppliers*: Renegotiate prices or payment terms with suppliers to ease cash flow.

7. *Prioritize expenses*: Manage expenses and prioritize essential expenditures.

8. *Consider a GST payment plan*: Approach the tax authorities to discuss a payment plan. 


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