According to Divakar Vijayasarathy, founder and managing partner of consulting firm DVS Advisors LLP, GST on input is higher than GST on output in some manufactured goods such as footwear, man-made yarns, and LED lights. “The most critical impact is on the working capital of the businesses since GST paid at higher rates on inputs is blocked till the grant of refund,” he said. The refund process is cumbersome and tends towards litigation, he added.