Amid the nationwide lockdown, the government may provide a six-month freeze on goods and services tax (GST) as relief for most affected industries, according to a report by The Economic Times. India is currently in a nationwide lockdown to contain the spread of COVID-19. That only essential items and services can be provided during this period has hurt several sectors.
The pause on GST payments might be extended to industries such as aviation and hospitality, and a lower rate might be set for the real estate sector, the report said. Moneycontrol could not independently verify the story.
There is also a recommendation to move to a cash-based method of calculating tax from the existing invoice-based system, The Economic Times reported. The Centre may also provide GST relief on sales for which payments have been received during the lockdown by treating them as bad debts, the report said.
The government is also considering liquidity relief measures for cash-strapped businesses, the report said. “There is a thinking that for these service sectors, the government should at least spare its dues,” a government official told ET. The government may also waive other statutory charges on a temporary basis, the report added. The GST Council will make the final decision on the recommendations, the report said.