Abstract

Firstly, Compared to previous financial crises, the global pandemic (COVID-19) has wrecked the world’s economy and elicited a very different response to indirect tax regimes in particular, because governments have been unable to lean on policies that might increase demand and standard fiscal stimulus for an economic downturn. During this period global economy has got the flu resulting trade surplus reflecting on GST chain and depressed economic demand. Exports and imports have been falling since March which impacted the tax community with regard to GST returns due to unprecedented crisis which also in turn impacted other economic activities like interstate and intra state trade transactions. This situation was driven by Cessation of economic activity and is threatening to turn into a massive financial crisis despite the several steps taken by government to ensure that the financial contagion is arrested. Similarly proactive measures in GST are perhaps imperative regardless of the fiscal strain.

Keywords