Explainer: How inverted duties mess up GST rate cuts

The current ITC refund mechanism does not take into account the GST paid on input services and capital goods. Aligning rates, enabling refunds, and gradually moving toward a unified rate will give businesses certainty and foster long-term investment, explain Bipin Sapra & Swati Saraf From a four-tier to a two-tier rate structure The rollout of Goods and Services Tax (GST) rate rationalisation…