New Delhi, Nov. 11 -- The GST council's proposed safeguard allowing taxpayers to present objections and seek a personal hearing against restrictions on input tax credit (ITC) under GST Rule 86A could help micro, small and medium enterprises (MSMEs) resolve credit disputes and reduce working capital disruptions, the Federation of Indian Micro and Small & Medium Enterprises (FISME) said.

The industry body highlighted that blocking of input tax credit can force businesses to arrange additional cash to meet GST liabilities, diverting funds otherwise needed for wages, raw material purchases and debt servicing.

For genuine businesses, the ability to submit invoices, delivery records and payment evidence is important to address factual errors ...