Assocham President: Slash GST Rate, One-Time Loan & Promote Demands

Niranjan Hiranandani, the president of Assocham India, said during an interview that it is the need of the hour to promote and revive the demands for all sectors and the government should take the necessary steps instead of waiting for the COVID 19 vaccine. He also said that the rate of GST (Goods and Services Tax) Grab the information of revised GST slab rates on consumer products in India, Although GST council finalized the slab rates like 5%, 12%, 18% and 28% should be decreased by a minimum of 50% for all the sectors.

N Hiranandani, who is also the manager of the Hiranandani group, a real estate firm, also said that the financial system of the country will collapse if the Reserve Bank India and the government does not recast a one-time loan policy. “It is necessary to push demand now when opening up is taking place. Let us not wait for the vaccine. We have to be far more proactive in our measures for demand creation. There should be a 50 per cent cut in GST across all sectors for six months to instigate demand,” he said.

He said that the government should provide some income tax relief to the assessees and facilitate growth. The government is not taking proper steps to increase the demands and if it interferes even a little, there will be a sharp increase in the demands. He also said that just like the micro, small and medium enterprises 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 , sectors like tourism, real estate, salons, hotels, aviation and others should also be provided credit guarantee for loans.

He also pointed out that different states have started the lockdown process again which is nothing but a disaster as the businessmen are unable to plan and labour can not be managed due to the uncertainties. Now that the labourers from across the country have started going back to work but in small quantities, the re-lockdown will affect the businesses and the labourers as well.

“Where they have opened up and locked in again, that is a disaster. It is difficult to get materials to come in and to get workers to come back if there is going to be a lockdown again. It’s a trickle as compared to a tide,” said Hiranandani.

The lockdown imposed by states like Uttar Pradesh, West Bengal, Madhya Pradesh, and Karnataka has forced the manufacturing units to shut down, affecting the labourers.

Hiranandani has said that the real estate sector Know what the experts have to say on impacts of Goods and Service Tax (GST) in the countrys Real Estate Industry. Read More has already seen price correction and amid the corona outbreak, the buyers have delayed their house-buying decisions because of the uncertainty. The real estate sector has already seen a massive hit in the pre-pandemic period. The Rs 25,000 crore package introduced by the government to finance incomplete housing projects is not sufficient for the sector to revive.

“The last mile funding required before the pandemic was Rs 25,000-Rs 50,000 crore. But this amount is now Rs 1.5 lakh crore,” he said.

The Special Window for Affordable and Mid-Income Housing or SWAMIH Investment Fund was announced by the government last year for providing relief to the housing projects, but there was a delay in approving the first project, which was done recently. The government has approved only Rs 8,767 crore for 80 projects under the scheme so far.