Report Says Government To Allow 6 Months Suspension On GST For The Worst Hit Sectors By Coronavirus
The sectors including hospitality, restaurants, aviation and the other ones which are heavily affected by the Coronavirus pandemic are planned to give a GST relief by the government of India by suspending the GST collection from these sectors for a period of six months. As per the report made by Economic Times, there will also be an exception approved by the Government for paying low amount GST by the sectors such as Real Estate.
These exceptions however need an approval from the GST council as well. Along with the worst hit sectors this tax exception will provide a huge relief to the small businesses as well. This suspension of GST is seen as a good move by many people as this would help most of the business to regain back its economic stability. Government is also considering presently to levy GST based on cash-based system rather than the present system which is based on invoices. This would ensure that all business would pay GST only after revenue generation and not after just raising the invoice for any service provided.
As per the economic experts, both these agendas which are planned by the government is extremely important at this time as this would help increase the liquidity which is extremely essential for small firms currently. These new plans by the government is expected by people as soon as the lockdown comes to an end.