Government To Refund GST To Businesses For Order Cancellations Due To COVID-19

Government To Refund GST To Businesses For Order Cancellations Due To COVID-19

The government will give refunds to businesses for goods and services tax paid on orders that were cancelled by customers due to the national lockdown imposed to control the novel coronavirus outbreak, according to a order.

This will help businesses that will have to return entire payments made to them, including tax. For instance, if a customer made a hotel booking of Rs 10,000 + 18 percent tax, and cancels it due to the lockdown, the hotel will have to return the entire Rs 11,800 (Rs 10,000+1,800), even if the business has deposited GST with the government.

Currently, businesses used to adjust the excess GST paid with other new bookings, but now they will be eligible for a refund, which will be a big relief, said Rajat Mohan, a partner .

Some of the industries that were the most impacted due to Covid-19 and stand to benefit are hospitality and tourism, sports, entertainment, media, advertising and aviation, according to Mohan.

Getting full refund for businesses on cancellation of services contract or return of goods would improve their liquidity position, Mohan told BloombergQuint.

Source: Bloomberg-Quint

XaTTaX is Best GST Software, Simplify your Financial matters with GST eFiling Software for Return Filing & GST Billing Software in India.

  • Automate Invoicing and get Paid Faster
  • Integration with all popular accounting software
  • Manage your GST and E-WayBill Software anytime anywhere using multiple devices

Get Our GST Software DEMO and E-WAY BILL DEMO for FREE

Leave a Reply

Your email address will not be published.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