Can GST input credit justify low DSCR? Here’s the banker’s view!

Can a borrower with DSCR below 1 justify their loan using available GST input credit? The answer is no. DSCR (Debt Service Coverage Ratio) measures a business’s ability to repay loans from operating profits, not from GST credits or future receivables. Banks assess DSCR based on actual profits and cash flows to ensure loan safety. Input GST credit is not considered a recurring source for debt repayment.
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Видео Can GST input credit justify low DSCR? Here’s the banker’s view! канала CA Ankush Jain