Sources Declined Rumors About FM’s Plan to Impose COVID Cess on GST

There were some rumors in the air that the central government is planning to impose COVID cess on GST to improve the economic condition of the country which is getting down day by day due to the COVID-19 and lockdowns.

Now some of the sources clearly declined all these rumors and stated that The Finance Ministry is not in the mood to impose a cess on the GST to gather more help to deal with COVID-19 Pandemic. They said, “There have been stories in the media claiming that the central government is considering a calamity cess on GST to tide over the economic crisis in the wake of Covid-19 pandemic”.

They further added that “In the present economic scenario in Covid-19 pandemic, any purported proposal of introducing a calamity cess would be nothing less than the adversity itself”.

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They also added that this type of proposal will harm productivity at this time when the sales are already at the bottom. Everything, even the industry is going through a tough time considering the demand and labor challenges that are expected to remain in the near future too due to the pandemic. Thus tinkering of taxes or cess would be not the best thing to do in this situation.