Master in Accounts & high court Advocate
9610 Points
Posted on 17 October 2024
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.