Claim the GST Refund on Orders Canceled Due to COVID-19

The government recently rolled out an order declaring that it is going to grant GST Refunds Get to know about official GST refund process under GST regime as finalized by the GST Council. We have included terms and conditions of all aspects. Read more to all the businesses for the orders that were canceled by the customers due to the nationwide lockdown announced by PM Narendra Modi in order to curb the widespread use of COVID-19 in India. The step will increase the liquidity which in turn will allow businesses to make easy refunds for canceled orders.

For Instance, the customer makes a booking of Rs, 10,000 in the hotel. So the entire amount paid by the customer will be 10,000 + 18% GST = Rs. 11,800. Upon canceling the booking the hotel management has to refund the entire amount including the GST. To ease the process of complete refunds to the customers, the government has decided to give refunds on all the canceled orders for which GST was paid by the businesses.

A 21 days lockdown started from Tuesday midnight (24 March 2020) and will prevail till 03 May 2020. “So far the businesses used to adjust the excess GST paid with new bookings but now they will be subject to a refund from the government’s end. That will give businesses a big relief” said Rajat Mohan, AMRG and Associates. Though the COVID-19 crises have led to a huge financial loss to many industries from manufacturing units to service sectors the sectors that are largely affected are hospitality and tourism Is your business linked or related to hospitality and tourism Industry? Keep your eyes open to see GST impact on both industries with experts. Read more, sports, entertainment, media, transport, and aviation, said Rajat.

Full refunds granted by the government to the businesses upon cancellation of orders by the customers will improve the liquidity of businesses, said Mohan. Not only India but the entire world is dealing with COVID-19 crises. The pandemic has taken many lives and many are still in the grip of this disease struggling to get rid of it. Every country is dealing with this pandemic in its own way and so is India. PM has announced the lockdown to stop human interaction as coronavirus is highly contagious and travels from person to person. For now one can be safe only by staying at home.