The government will give refunds to businesses for goods and services tax paid on orders that were cancelled by customers due to the national lockdown imposed to control the novel coronavirus outbreak, according to a order.
This will help businesses that will have to return entire payments made to them, including tax. For instance, if a customer made a hotel booking of Rs 10,000 + 18 percent tax, and cancels it due to the lockdown, the hotel will have to return the entire Rs 11,800 (Rs 10,000+1,800), even if the business has deposited GST with the government.