India’s restaurant industry has sought deferment of all statutory dues, including goods and service tax, as the rising number of novel coronavirus cases forced several states across the country into lockdown.
The National Restaurant Association of India in a letter to Finance Minister Nirmala Sitharaman appealed for immediate relief on various state and central levies and job cover for employees in the sector.
That comes a week after the lobby, which represents over 5,00,000 restaurants across the country, asked its members to shut down dine-in operations till March 31, following the Covid-19 outbreak.
“We are staring at unmeasurable losses, the prospect of several businesses closing down and most importantly, a scary spectre of job loss to millions in the sector employing more than seven million people,” NRAI President Anurag Katriar wrote in the letter. “These are unprecedented times…it is a matter of our survival.”
The letter urged the central and state governments to consider total and immediate deferment of all statutory dues such as GST, advance tax payments, provident fund, ESIC, customs and excise duties, renewal fee for liquor licenses and value-added tax for a period of twelve months. ET has reviewed a copy of the letter.
Besides, the letter also appealed to the ministry to create an unemployment pay cover for employees in the hospitality business, restore input tax credit on GST and expedite the settlement of claims by both public and private sector insurance companies. It also asked the government to send a notification allowing invoking of force majeure.
The restaurant industry with an annual turnover of Rs 4 lakh crore is the third-largest after retail and insurance in the service segment, Katriar said.
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