India's GST Faces Structural Credit Issues and Increased Judicial Scrutiny on Enforcement

India's GST system faces challenges on two fronts: structural issues in the input tax credit (ITC) chain hinder its function as a true value-added tax, causing tax cascades and affecting exports, while recent judicial scrutiny has increased over GST enforcement actions. High courts across India are emphasizing due process and procedural fairness in cases involving registration suspensions and bank account attachments, prompting authorities to follow stricter procedural discipline.