In view of the widespread coronavirus epidemic -induced lockdown, the government may provide relief (6 months on GST payment) for the industries most affected and withhold a Goods and Services Tax (GST) for six months for such industries. However, the GST Council will take a final decision on the recommendations.
Significantly, at present, India is in a nationwide lockdown to stop the spread of COVID-19. During this period, only essential goods and services can be exempted, causing damage to many areas. Prominent among them are the aviation and tourism sectors, which have been badly affected in lockdown.
The break can be extended to industries such as aviation and hospitality
A report by the Economic Times stated that the break on GST payments could be extended to industries such as aviation and hospitality and set lower rates for the real estate sector. However, Oneindia has not independently verified this.
Tax calculation on cash-based method is also recommended
The report also mentioned that it is also recommended to move from the current invoice-based system to a cash-based method rather than a tax calculation. The report also said that the center can also give GST relief on the sale, considering the payments received during the lockdown as bad debts. Not only this, but the government is also considering liquidity relief measures for cash-strapped businesses.
The government may also waive other statutory fees on a temporary basis
According to a government official, “there is a feeling that the government should at least waive GST arrears for these service areas. The report states that the government may also waive other statutory fees on a temporary basis. However, the report said GST Council will take a final decision on the recommendations
6 months on GST payment