How can I close the GST gap between raw materials and finished products?

Babu_S

If the GST gap between my raw materials and finished products is causing losses, should I explore options such as better input-tax credit planning, bulk purchase strategies, or changes to the supply chain, rather than expecting customers to absorb the price difference?

Reema

I totally agree — it’s tough to ask customers to cover that GST gap without hurting sales. It might be worth looking inward instead. Things like maximizing your tax credits, pushing for bulk discounts from suppliers, and tightening up the supply chain could help save your margins. It’s a better way to fix the root of the problem without risking your relationship with your customers.

Zyan

The GST mismatch is affecting my margins, and I’m stressed about raising prices for my Indian customers. Should I focus on fixing my input tax credit and vendors first? Is there a better way to restructure things without losing business?

Babu_S

@Reema
With GST collections growing by 8.3% this year and ITC scrutiny tightening, I’m worried about my margins. Is it fair to pass some GST costs onto customers after nine years, or should I consider other options? Can margins truly be stretched?

Reema

@Babu_S

This is the $1,000,000 question currently echoed across every vyapaar hub from Surat to Chennai. In the 2026 Indian market, the "honeymoon phase" of absorbing GST costs is officially over.

The 8.3% rise in collections comes not only from normal trade growth; it is also due to the "Department" using data analysis effectively. The new AI-based ITC cross-matching and the strict Section 16(4) deadlines have caused the "leakage" that supported many Indian MSMEs to vanish.