No calamity cess on GST, says the Finance Ministry

gst eway bilThe government has no plans to impose calamity cess on the Goods and Services Tax (GST) to tide over the economic crisis caused by COVID-19 and the lockdown imposed to prevent its spread, news agency ANI reported on Saturday, quoting finance ministry sources. The sources said there have been reports in a section of the media about such a cess and tinkering with taxes would not be a prudent option in the given scenario. “There have been stories claiming that the Centre is considering a calamity cess on GST to tide over the economic crisis. In the present economic scenario in COVID-19, any purported proposal of introducing a calamity cess would be nothing less than adversity itself,” a source said.

Meanwhile, the GST Council is expected to meet at some point next month.

The sources said any such proposal would prove to be “counter-productive” as the sales figures are already low due to slump in demand and introducing a cess, which would lead to a further increase in prices, could hamper the sales even further.

“Any such proposal would be counter-productive as at this time sales are already low. The industry is facing a crisis for want of demand and likely labour challenges that might come in future due to COVID-19. Tinkering with taxes/cess wouldn’t be a prudent option,” the source added.

 

 

__________________________________________________________________________________________________________

We’re listening: 

For any query, support or feedback, reach us at India Tax & Legal Compliance or WA us at +91-9230033070 or Call us at 1800-102-7550 for any support/query/feedback.

 

In these troubled times -COVID-19, we, at Taxmantra Global urge you to stay safe – social distancing, personal hygiene and health care are of utmost importance! Stay safe!

 

__________________________________________________________________________________________________________

Leave a Reply

Your email address will not be published. Required fields are marked *