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GST 2.0 inverted duty structure hits FMCG and pharma as credits pile up
Economy
Published on 24 April 2026
Unusable GST credits are swelling after compensation changes
Indian businesses are struggling under GST 2.0, with an inverted duty structure hitting FMCG and OTC pharma firms hard. Experts point to the phase-out of the GST compensation cess, which has left companies with a backlog of unusable credits. On top of this, tighter free-trade agreement rules are creating fresh compliance and trade barriers.
- Inverted GST duty structure is pressuring FMCG and OTC pharma
- GST compensation cess phase-out has left unusable credit backlogs
- Free-trade agreement rules are adding new barriers for firms
- Overall GST transition is creating additional compliance friction
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times