GST paid on invoices which have turn into unhealthy money owed have to be paid again, Home Air Cargo Brokers Affiliation of India (DACAAI) mentioned on Tuesday.At current, beneath the GST legislation brokers must up entrance pay 18 per cent GST on the invoices.
Nonetheless, because of the outbreak of Covid-19, the instances of unhealthy money owed have been rising.
“On one facet, there is no such thing as a enterprise for the previous two and a half months, and on the opposite, resulting from lockdown, we aren’t getting funds from our shoppers for providers offered to them,” DACAAI President Amit Bajaj mentioned.
“As per the current GST legislation now we have already paid 18 per cent GST on the invoices raised by us, however instances of unhealthy money owed have been rising. This places us in double jeopardy and our members are struggling large losses as.”
In accordance with Bajaj, a lot of the DACAAI brokers are small and medium enterprises and are on the verge of closing down enterprise resulting from losses being suffered by them.
Moreover, he identified that within the present state of affairs, airways are insisting that prices be paid upfront.
“Our members are going through large losses and lack of working capital as our funds should not forthcoming and GST can be caught with the federal government,” Bajaj mentioned.
“DACAAI urges the federal government of India, GST Council and all involved that GST paid on the unhealthy money owed the identical must be re-credited again into our account. Both Authorities ought to take into account charging GST solely after the funds are realised or refund such GST again to us.”