Startup industry groups to seek loans against GST input tax
Startup industry groups are gearing up to ask the Finance Ministry for permission to get loans using their pending GST input tax credits as collateral—a move that's already helped MSMEs and bigger companies.
Startup industry bodies plan to make their case by the end of February 2026.
Founders pushed for easier loan schemes, simpler filing rules
A lot of startups are strapped for cash because their GST refunds are stuck, making it tough to pay vendors and employees on time.
While banks happily lend to MSMEs against these credits, startups need official approval first.
Ahead of the Budget presentation, founders pushed for easier loan schemes, measures to unlock pending GST input tax credits, and simpler filing rules—hoping these changes will free up thousands of crores currently locked away and help keep their businesses running smoothly.