Aviation, restaurants, and hospitality sectors most affected by Coronavirus Pandemic may be given an exemption for not paying GST for 6 months. In addition, the GST rate can be reduced for the real estate sector.
The central government is considering a Goods and Services Tax (GST) relief package to sectors affected by the Coronavirus Pandemic. According to people aware of the case, aviation, restaurants, and hospitality sectors most affected by the corona epidemic may be given an exemption for not paying GST for 6 months. In addition, the GST rate can be reduced for the real estate sector. In other proposals, GST is being considered on the basis of the cash system. Currently, invoice based systems are taxed. Many countries have imposed a temporary ban on tax payments in the Corona-made situation.
According to the Economics Times report, in addition, those who have not received payment due to lockdown, are considering giving GST relief on sales. Units struggling with liquidity are expected to get relief from these measures. However, the final decision on these proposals will be taken by the GST Council, which is the apex decision making body for GST.
According to sources, the government may also exempt these sectors from other statutory charges for some time. There is a demand for waiving the entire GST, but the government is considering giving an exemption for the non-payment of GST for some time. Waiving the entire tax of a sector will cause problems in the credit chain and problems will increase.
The restaurant charges 5 percent GST. There are many rates in the hospitality sector. Rooms charged above Rs 7500 attract 18 percent GST and rooms with less rent attract 12 percent GST. GST is 5% on economy class travel while 12% on business class is GST. For the real estate sector, it is proposed to reduce the rate from 5 percent to 3 percent without credit. At the same time, it should be reduced from 12 to 8 percent with credit.