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The finance minister also said the decision to reduce GST rates on health care and other products will be made by the GST Council.
Finance Minister Nirmala Sitharaman said the government was working with the RBI on the need to restructure lending to help the industry overcome the impact of COVID-19[female[feminine.
“The focus is on restructuring,” she said, addressing a FICCI event.
“The Ministry of Finance is actively engaged with the RBI on this matter. In principle, the idea that restructuring might be necessary is well accepted, ”Ms. Sitharaman said.
The finance minister also said the decision to reduce GST rates on health care and other products will be made by the GST Council.
She said the ministry was working with the RBI at the hotel industry’s request for the moratorium extension or restructuring.
To help borrowers cope with the liquidity crunch during the pandemic, the Reserve Bank of India (RBI) in March announced a three-month loan moratorium, which was then extended for another three months. Borrowers opting for the loan moratorium can defer payment of interest and loan principal during this period.
Regarding the difficulties faced by MSMEs in contracting loans under the government’s emergency credit guarantee program, she said: “Banks cannot deny credit to MSMEs covered by the facility. In case of refusal, these cases must be reported. I will inquire.
