Despite 4 years of GST, the problem of inverted duty structure persists.  In many instances, the rate of tax on the purchases is higher than that on the sales, resulting in accumulation of credits, and escalating the cost of production for Indian industry, making it less competitive.  With retrospective amendment of the Rules coupled with divergent views of the High Courts, the Government needs to step in to resolve this problem especially for sectors such as steel, rubber, textiles, etc. 

Senior Partner, Ms. Reena Khair and Senior Associate, Shreya Dahiya have authored an article on the subject.