According to a PwC (PwC is basically an international network of firms that consult services for businesses, manages several brands, policies) report, the central government might allow the India Inc to use cash to deposit GST and thus help them to get over the liquidity crisis because of the Covid-19 pandemic.
It also mentioned that the government could take into consideration about suspending the GST payments during the period of Covid-19 for certain select sectors while coming up with its support strategy for the industries in the upcoming phase.
In its report which is titled as ‘Reimagining GST@3’ PwC insisted on the importance of cash liquidity support schemes which will help in advancing business and keep a continuity. It further added that while the government has come up with budgetary support schemes along with relief packages similar to what several nations have done, but, in spite of all these steps, a lot needs to be covered.
The report highlighted that there are certain issues which require immediate attention by the government otherwise, the taxpayers will be intertwined in litigations which are long drawn and includes the eligibility of Input Tax Credit for stock that has expired, or intermediary services. It also added that the government should issue guidelines on these critical issues while keeping in mind the international taxation and also the business model scenario.
Certain measures such as one-time settlement of dispute under the Goods and Service Tax, using cash to deposit GST to the treasury, waive off the credit reversal requirement on stocks that have expired during this time period were advised by the PwC.
The PwC also said that the government can come up with a scheme where there will be an option of disclosing tax regimes voluntarily under the GST regime before undergoing a GST audit.