The announcements made by the Finance minister on Tuesday will help the business tide
after the heavy impact of COVID-19. It was said on Tuesday that the governments plan to extend dates for filing tax and GST returns and raise the default threshold that could activate the insolvency of a company will be helpful to businesses especially MSMEs tide after the negative impact that coronavirus has laid on them.
In a press conference, the finance minister Nirmala Sitharaman stated how the government has renounced the charges applicable on cash withdrawal from ATMs of other banks as a forerunner of the broader stimulus package due to the outbreak of coronavirus.
“Waiver of penalty, late fee and interest on GST will help the businesses and industry to
cope in the cash crunch and help in these testing situations” said CII Director General
M S Mani who is the Deloitte India Partner said that extension of GST return filling along with deferment of E-invoicing and announcement of new returns earlier will now allow businesses to focus on reviving business processes when the situation returns to normalcy in the future.
Assocham president Niranjan Hiranandani says that the industry has bee looking forward to broader economic packages like One Time Rollover for the purpose of reconstruction of
Debt and is to be announced soon across industries to bring back to normalcy its economic health.
“Extention time of the payment under the scheme of ‘Sabka Vikaas’ is as well a measure of welcome for the companies that were struggling to make payments during the lockdown”, said EY, tax partner, Abhishek Jain.
Suntuity Renewable Energy India Director of operations Imaan Javan said “ we express
relief towards the measure taken by Finance Minister fro filling dates of income tax and GST returns has been extended from March 31 2020 to June 30, 2020.
The last date for filing of income tax returns for the year 2018-19 and for linking pan with Aadhar has been extended to 3 months to June 30.
The last date for filing GST returns for the year 2018-19 was said to be March 30 earlier but snow has been shifted to the last week of June to provide help.
The bank charges for digital trade transaction for all trade finance consumers have also
been reduced “ These proactive steps are the need of the hour to reduce some of the hardships that the businesses are going through,” said Sohinder Gill director-general of the society of manufacturers of Electric Vehicles.
The decisions of the Finance minister have a timely move considering the fact that the
economy of the country is on its knees now.
As the lockdown has restricted any movement of people, the government has reduced the minimum balance to be maintained in the savings bank account and has also allowed
charge-free withdrawals from the ATM of any bank for three months.
Since the outbreak of coronavirus pandemic has caused destructive changes in the
economy, Finance minister Sitharaman has announced that the entrance of loan default that could set off the insolvency proceedings has been now raised from 1 lakh to 1 crore.
Stating that the announcements made on Tuesday were meant to ease the difficulties of
concessions on the citizens during the period of lockdown the Finance Minister Sitharaman said that an economic relief package was put into working and will be announced sooner.