New Delhi, Sept. 2 -- Corporate India, leaner than ever from efficiency gains forged through indirect tax reforms, faces a fresh challenge as the government's GST overhaul threatens to lock up cash and lengthen working capital cycles, even as weak demand clouds their growth prospects.

The transition to a two-slab goods and services tax structure could tie up working capital as companies pay higher GST on old stocks but sell at lower rates, analysts warned, adding that subdued consumer spending could persist through this financial year (2025-26).

The government is expected to unveil details of its GST restructuring this week.

Despite the short-term setbacks, artificial intelligence and supply-chain automation promise another leap in ope...