Center Tries to Economic Revival, Seeks India Inc’s Suggestions

The Central Government of the country is desperately trying to revive the country from the impact of the outbreak of coronavirus. The demands and suggestions made by the industry include reducing custom duties, more liquidity, reduction in GST (Goods and Services Tax) Have a look at the major issues/problems being faced by Indian people after the GST roll-out. We have enlisted reports and research as collected from the several sectors. Read More, and a pause on the tax searches and scrutiny till the end of 2020.

The center has ordered the officials from all the departments and ministries to contact the people from all the sectors and take suggestions from them on the methods for the revival of the economy. The center is trying to acknowledge the “wishlist” of the industry. The government official said, “The government recognizes that these are unprecedented times and industry will have to be taken on board to overcome the crisis. Ensuring liquidity is one of the top demands. However, all departments are trying to understand even micro issues hurting the industry”.

Read Also: GST Impact on Gross Domestic Product (GDP) in India The biggest tax reform i.e. Goods and Services Tax is now a part of Indian Economy. A new and unified tax structure is followed for indirect taxation on the place of various tax laws like Excise duty, Service Tax, VAT, CST etc. Read more

The International Monetary Fund (IMF) has projected that the growth rate of the country will be reduced to 1.9% from the previous projections of growth at the rate of 5.8% for the financial year 2021. The projections were made by the organization in the month of January where it said that the country will be facing the worst recession because of the outbreak of coronavirus. Barclay has projected the growth of the country to be at zero percent stating that the situation is going to be a lot worse than expected.

The Inputs Asked for by the Govt are Under three Heads

• Bottlenecks faced by the Industry
• “Wishlist” of the industrialists
• Ideas for revival

The Income Tax Department has asked its employees to submit the suggestions collected from 10 persons of different sectors and submit the reports by Wednesday. The people have suggested that the government should allow free audits as they are due soon. The assessees have demanded the government to provide fast refunds so that liquidity is maintained. Others suggested that the government should pause all scrutiny and other operations until the financial year 2021.

A government official has informed that most of the assessments have asked the government to extend the deadline for filing the Income Tax Return Read the easy guide on e-filing of IT return online in India. Step by step guide to filing income tax returns through official income tax department portal. The reduction in customs duties and GST is also being demanded by the taxpayers but the officials have refused to so as the reduction can result in increased Chinese imports and may compromise the ‘Make In India’ scheme.

Another official said, “The industry wants customs duty reduction and even GST cuts. They should understand that it is not doable. However, we are compiling these ideas to be discussed at a broader level”. The partner at AMRG and Associates, Mr. Rajat Mohan said, “Till next financial year, all kinds of notices and assessments shall be deferred unless any such delay is expected to cause irreparable damage to the public exchequer. Every correspondence with the tax officer, wherever needed, will be by way of email communication only”.

He also suggested that the Micro, Small and Medium Enterprises (MSMEs) View the impact of GST law on startups and SMEs (small and medium enterprises) in India. The tax will provide great relief to these companies (experts reveal). Read More should be fully exempted from any kind of scrutiny for the financial years 2020 and 2021, and the refunds of the self-assessment taxpayers should be provided refunds up to Rs. 1 Crore.

A partner at law firm Shardul Amarchand Mangaldas and Co, Gouri Puri suggested that TDS (Tax Deducted at Source) should be deducted on an actual basis. He also suggested that the deemed dividends should be suspended and prerequisite taxation on loans should be provided to the shareholders and other assessees suffering from the impact of coronavirus.