Amidst the uncertainty on extension of lockdown period looming large, the government has announced a big relief to small scale traders, including IT partners. The government has decided to issue all pending income tax refunds up to Rs 5 lakh, with immediate effect. This would benefit around 14 lakh taxpayers. It has also been decided to issue all pending GST and custom refunds which would provide benefit to around 1 lakh business entities, including MSMEs. Thus, the total refund granted will be approximately Rs 18,000 crore.
The relief is believed to give respite to a large section of traders who have been facing cash flow challenges due to the 21-day lockdown.
Applauding the step taken by the government, Saket Kapur, General Secretary, PCAIT said, “At the outset, government is in the listening mode and is not blind to our cause and deaf to our appeal. I am feeling thankful and looking forward to acceptance of other concerns.”
PCAIT has been advocating for the issuance of GST and income tax refund with the Ministry of Finance. The announcement has brought a big cheer to PCAIT’s members.
Meanwhile, IT partners are also in the view of extending the lockdown period. Kapur said, “Prima facie, in view of the fact that rate of COVID-19 infection is yet to flatten, logically extension of the lockdown in identified hotspots is the only solution before the government, otherwise it will be suicidal for the country. Quantum of economic problem will depend upon the period of extension of the lockdown. Notable uncontrolled spread of COVID-19 infection shall have devastating consequences as compared to the economic loss which is reversible as the time passes.”
Seconding the thought, Navin Gupta, Secretary, FAIITA, said, “With the rise in cases, we in the view of health and welfare of our members, despite the growing financial issues, support extension of the lockdown period.”
Gurpreet Singh Jagdev, VP of Punjab-based PACT highlighted that as time passes, payment recovery from T3 partners and customers, payment to national distributors have been a big worry as the stock is lying and there’s no sale, along with monthly pay out of rent and salary pressure.