VMPL
Gurugram (Haryana) [India], January 16: As the central government prepares for the upcoming Union Budget 2026, financial experts are shifting their focus toward structural GST reforms and the increasing global footprint of Indian professional services. With the "GST 2.0" rate rationalization of late 2025 now in effect, the industry is closely monitoring how the government intends to address the resulting operational challenges.
Addressing the Working Capital Deadlock
According to CA Neeraj Agrawal, founder of the Gurugram-based firm A2N Advisory, a primary concern for the 2026 Budget is the liquidity crunch caused by the Inverted Duty Structure. While recent rate cuts have lowered prices for consumers, there is a big volume of accumulated Input Tax Credit (ITC) for manufacturers who pay higher tax rates on raw materials than on their finished products.
Agrawal suggests that the introduction of a provisional refund mechanism could be a critical update in this Budget. By allowing businesses to access a portion of their refund claims immediately upon filing, the government could release billions in trapped working capital, particularly benefiting the MSME sector.
Additionally, there is a growing consensus among tax professionals that the Budget should provide a clear exit path for accumulated Compensation Cess credits. Since the cessation of certain levies in late 2025, many businesses carry stranded credits that currently cannot be utilized against standard GST liabilities.
The Expansion of Indian Accounting to the US Market
Beyond domestic taxation, the financial sector in Gurugram is increasingly focused on the export of high-value professional services. Market trends indicate a significant surge in demand from United States-based entities--ranging from startups to established C-Corps--seeking specialized US GAAP-compliant bookkeeping.
Industry leaders like Agrawal have positioned firms such as A2N Advisory as essential partners in this global shift. As the US faces a sustained shortage of accounting professionals, Indian firms have moved beyond basic data entry to provide comprehensive, audit-ready financial reporting. This evolution has established Gurugram as a sophisticated hub for international finance, where technical expertise in US regulatory standards is now a standard offering.
The Path Forward
The expectations for the 2026 Budget are largely centered on policy maturity. Analysts believe that by refining GST refund protocols and fostering an environment conducive to service exports, the government can further strengthen India's position as a global financial nerve center.
About CA Neeraj Agrawal and A2N Advisory: CA Neeraj Agrawal is a prominent financial consultant in Gurugram and the founder of A2N Advisory. The firm is recognized as a leading provider of outsourced accounting services in India, specializing in GST advisory and US-compliant bookkeeping for international clients.
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