Budget 2021: Mall Owners Seek Financial Waiver, Easing of IT Norms

The mall owners are seeking financial waivers, a loan moratorium for the sector along with easing of income tax norms in the upcoming Union Budget.
Budget 2021: Mall Owners Seek Financial Waiver, Easing of IT Norms 

The mall owners are seeking financial waivers, a loan moratorium for the sector along with easing of income tax norms in the upcoming Union Budget.

In its budget recommendations, the Shopping Centre Association of India has also sought restructuring of GST norms to strengthen the retail and shopping centre industry.

"Input tax credit limitations are against the fundamental objects of GST implementation and real estate sector seeks full input tax credit profits as opposed to GST on forecast lease receivable for retail shopping centres, commercial workplaces along with IT/ ITeS parks/SEZs and logistics, warehousing, and industrial initiatives," a statement by SCAI said.

It has also sought clarification with respect to defaults by MSME vendors regarding filing of GST returns.

"The overall recovery of the industry could have been much better; however, the current recovery rate is not helping the sector financially. We have been urging the government to extend support to the industry with a long-term beneficial plan," Amitabh Taneja, Chairman, SCAI said.

He said that by providing adequate financial reliefs in GST, loan waivers, income tax, relaxations in compliance timelines, additional deductions in CSR, and by incentivising digitisation, the government can help shopping centres, modern retail, and associated sectors in recovering and reaching the pre-Covid level.

"Another moot point that we feel requires immediate attention is around the retail policy. The policy has to go beyond the current situation or indeed the past 10 months. It should include structural issues like getting set-off on GST in construction activities against GST on rentals," Taneja added.

“Our expectation from the budget is that it needs to boost consumption, strengthen the money in consumers' hands so that they come out and spend. It should instil strength in the economy's growth and bring back confidence in businesses to invest in the future. The banking system can help fresh investments or taxation leave more in the customer's hands to spend,” added Rajneesh Mahajan, CEO, Inorbit Malls.

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