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Finance Ministry is currently not considering to impose calamity cess on GST due to Covid-19 and Lockdown

Sources have suggested that the government is not condering to impose any calamity cess on the GST to tide over the economic crisis caused by COVID-19 followed by nation wide lockdown. There have been some reports in a section of 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.

If this cess is implemented, Industries and cunsumers would be hit by double whammy of low sales and increased prices. 

Source : NDTV


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May 25, 2020


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