Government To Refund GST To Businesses For Order Cancellations Due To Covid-19
Businesses suffering due to the outbreak of the novel Coronavirus and subsequent lockdown are in for some relief as the Government has announced the issue of GST refunds on orders that were cancelled by customers due to the national lockdown. Among the businesses most impacted by the lockdown, some include hospitality and tourism, sports, entertainment, media, advertising and aviation.
This tax relief measure will be largely beneficial for businesses that have had to return entire payments, including tax. As per existing practices, businesses adjusted any excess GST paid with other orders, but they will now be eligible for a refund, thereby improving liquidity.
Other GST relief updates
- Special Economic Zone units might get IGST waiver
- The Government is considering waiving off of IGST for SEZ units from the pharmaceutical industry that makes supplies to domestic traffic areas.
- The revenue department is also considering treating a section of MSMEs under the GST scheme for composition dealers to help cope with losses during the lockdown period.
- Auto industry demands relief measures
- The auto industry sent a letter to the Prime Minister’s Office recommending measures to ease the burden on auto dealerships in light of the Coronavirus pandemic and subsequent lockdown.
- These demands include relaxation in GST rates for new car buyers, reduction in interest rates through banking institutions and an extension under the Corporate Depreciation Scheme.
- FICCI recommends waiver of airlines’ interests and penalties, GST relief
- India’s aviation industry is facing a crisis of unimaginable proportions due to the impact of the coronavirus pandemic, said the Federation of Indian Chambers of Commerce and Industry while recommending that the Government waive off interests, penalties, delayed charges and accruals to airport operators.
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