High GST on auto parts lead to working capital shortage, tax evasion by SMEs

Small and medium companies in the  auto components business are facing working capital shortage post-GST implementation, due to the high tax rates on certain components and lower input tax credit (ITC) claim option, which has led to a higher output cost. Besides, high rates on various components have led to tax evasion by multiple players, although the process of taxation has streamlined post…