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TMS Ep491: GST on gaming, AI & Indian IT, Fitch's US downgrade and more

Has the online gaming industry got a new lease on life? Is Indian IT embracing AI? How soon can equities recover from Fitch's US downgrade blow? What is Minerals Security Partnership? Answers here

28% GST on online gaming, casinos, horse racing: What it means for players

The GST Council has stuck to its earlier decision to impose a 28% levy on the full face value of bets placed on online gaming, casinos and horse racing, but kept the door open for a review

2 GST tribunal benches will come up in Bengal: WB Finance Minister

Two GST tribunal benches will come up in West Bengal this year, Minister of State for Finance (Independent charge) Chandrima Bhattacharya told the Assembly on Thursday. The two benches, part of the central Appellate Tribunal, will address the issues of aggrieved parties, she said. "Two GST tribunal benches will come up in our state and will be functional from October 1. It will facilitate faster resolution of GST-related issues," she said. Bhattacharya, also the MoS for Health, Family Welfare, Land and Land Reforms, told reporters that the benches will function in a phased manner. "We had requested for two benches at the 50th GST Council meeting and the Centre agreed to it," she said. Bhattacharya, who moved the West Bengal Goods and Services Tax (Amendment) Bill, 2023, said it will help the MSME sector to grow. The minister also voiced her concern on the rise in online gaming addiction among children and youth and said Bengal had decided to go ahead with the Centre's move to levy

Small firms in online money gaming will be unable to survive high GST: AIGF

Small companies that are into online real money-based gaming will not be able to survive due to the high Goods and Services Tax of 28 per cent, industry body All India Gaming Federation said on Wednesday. Finance Minister Nirmala Sitharaman has announced that a 28 per cent GST on the full face value of bets placed on online games will be implemented from October 1. "We believe the decision by the GST Council of valuation on deposits will severely impact the online gaming sector and result in a situation where a majority of players, including the MSMEs will no longer be able to survive in the face of the increased tax liability of 400 per cent," AIGF said in a statement. The industry body said that only established and well entrenched skill gaming companies may be able to scrape through this change by using their existing capital reserves to counter the effects of substantially increased tax liability. "However, even their revenues and valuations will significantly fall. Additionall

Delhi finance minister 'strongly opposed' to 28% GST levy on online gaming

Delhi finance minister Atishi has "strongly opposed" the GST Council's decision to implement a 28 per cent GST on online gaming platforms, an official statement said on Wednesday. The GST Council chaired by Union finance minister Nirmala Sitharaman on Wednesday decided that 28 per cent GST will be levied at face value of entry level bets placed in gaming platforms and casinos. The Centre will bring amendments to the Central GST law in the ongoing monsoon session of Parliament, following which states will pass the amendments to State GST law in their respective assemblies. According to the official statement, Atishi said that the BJP-led central government is not ready to reconsider GST rates on online gaming platforms and the 28 per cent tax rate could "restrict" the industry growth. "More than 900 startups in India are based on the online gaming industry. BJP's lack of futuristic vision will lead to the industry's destruction. The central government promotes startups but it seeks

Tweaks to GST Act must factor in law banning online gambling: TN to Centre

In the proposed amendment to the GST Act and Rules to tax online gaming, suitable modifications should be made by taking into account the state law banning online gambling, the Tamil Nadu government conveyed to the GST Council on Wednesday. In the 51st GST Council meeting, Tamil Nadu Finance Minister Thangam Thennarasu expressed strong reservations in respect of a certain clause in the proposals for amendment to GST Act and Rules in view of the TN Prohibition of Online Gambling and Regulation of Online Games Act, 2022 (banning online Rummy and Poker). The GST meet, chaired by Union Finance Minister Nirmala Sitharaman was held through video conferencing today. The agenda of meeting included draft proposals to amend the GST Act and Rules for levy of GST on online gaming, casino and horse racing. Thennarasu underscored the ban on online gambling (online wagering or betting), playing any online games of chance for money or other stakes, which are punishable offences in Tamil ...

28% GST on online gaming stays, to be reviewed after 6 months of roll-out

The decision to impose a 28 per cent tax on the full face value of bets placed on online games will be implemented from October 1 even though there was demand for a review from states like Delhi and Goa, finance minister Nirmala Sitharaman said on Wednesday. The GST Council -- the highest decision making body of the new indirect tax regime that comprises Union finance minister and representatives of all states -- discussed the language of amendments that will be needed to enabling taxing online gaming, she said after the panel meeting. The panel had at its last meeting decided to levy a 28 per cent GST on full face value of bets placed and Wednesday's meeting was to deliberate on the tax law changes that would be required to implement it. Sitharaman said Delhi finance minister opposed the levy of the tax on online gaming while Goa and Sikkim wanted the levy on GGR (gross gaming revenue) and not on face value. Sitharaman, however, said other states ranging from Karnataka to Gujarat,

GST Council meeting: Delhi FM Atishi to raise issue of tax on online gaming

Ahead of the GST Council meeting, Delhi Finance Minister Atishi on Wednesday sought reconsideration of the decision to levy 28 per cent tax on online gaming. The GST Council, in its meeting on Wednesday, is likely to finalise the modalities for determination of supply value in online gaming and casinos for levying 28 per cent tax. The minister, who met representatives from the online gaming industry on Tuesday, said the issue will be raised by her at the meeting. "Last month the @GST_Council decided to impose a 28% tax on Online Gaming. Many entrepreneurs and investors from the start-up ecosystem opposed this decision, as they felt that it would destroy this fast growing industry.Yesterday, I met several representatives from the Online Gaming industry to understand their concerns. "Today the @GST_Council is meeting again, and I will ask the Council to reconsider its decision. Promoting start-ups and entrepreneurship is the only way our economy is going to grow!" Atishi tweeted. Th

GST mop-up rises 11% to Rs 1.65 trn in July on sustained economic momentum

Sustained economic momentum and strong anti-evasion measures have helped boost collection

Current law enough against GST evasion by offshore gaming platforms: FinMin

The finance ministry on Tuesday said there are sufficient enforcement provisions in GST laws to take action against offshore gaming platforms, which default in paying taxes. The GST Council on July 11 decided that online gaming is an actionable claim, like the lottery, on which a 28 per cent tax is to be levied. Minister of State for Finance Pankaj Chaudhary informed the Lok Sabha that some representations have been received from stakeholders that the council's decision will prompt online gaming platforms to shift to offshore locations. "Sufficient enforcement provisions exist to take action against offshore platforms, which do not pay prescribed GST," Chaudhary said in a written reply. The GST Council's decision to levy a 28 per cent tax on the full face value of bets on online gaming companies is based on the recommendation of a Group of Ministers (GoM) on the issue. The council is scheduled to meet virtually on Wednesday to decide on the manner in which the supply value will be

GST Council meet on Wednesday to finalise modalities for taxing gaming

The GST Council in its meeting on Wednesday is likely to finalise the modalities for determination of supply value in online gaming and casinos for levying 28 per cent tax. The Council, chaired by Union Finance Minister Nirmala Sitharaman and comprising state ministers, in its last meeting on July 11 approved levying 28 per cent tax on full face value of bets in online gaming, casinos and horse racing. Subsequently, the Law Committee, comprising Centre and state tax officers, have prepared draft rules for consideration of the GST Council with regard to computation of supply value for tax purposes. The committee has suggested insertion of a new rule under which value of supply of online gaming would be the total amount deposited with the online gaming platforms by way of money or virtual digital assets on behalf of the player. With respect to casinos, the committee has proposed that the supply value would be the amount paid by a player for purchase of tokens, chips, coins or ...

Gamers urge finance minister to reduce current 28% GST on online gaming

Online gamers' association on Tuesday requested finance minister Nirmala Sitharaman for a reduction of 28 per cent Goods and Services Tax (GST), saying high taxation would lead to mushrooming of illegal gaming firms. Gamers from Tier II and Tier III cities under the aegis of 'Indian Gamers United' in an open letter to finance minister Nirmala Sitharaman said that high taxation will push the gamers towards illegal and offshore platforms where no tax is payable but will put the gamers into a very high risk. The association also pitched for making a distinction between games of chance like gambling and games of skill like gaming. Gaming is a skill-based activity and cannot be clubbed together with games of luck like gambling and horse racing so taxation requires a relook and making it tax friendly, 'Indian Gamers United' said in a statement. Since several of these games come with the option to earn monetary rewards, this is giving rise to a segment where young people are using their .

Amazon meets Urban Company: EESL to set up energy-efficiency marketplace

This would be a first of its kind marketplace which Kapoor said would be completely IT integrated and allow mega scale projects to get fast track approval

Amit Mitra highlights countrywide GST frauds, urges FM to call Council meet

Alleging that GST frauds are proliferating across the country and MSMEs are facing problems due to a web of regulations, Dr Amit Mitra, principal chief advisor to West Bengal Chief Minister Mamata Banerjee, urged Union Finance Minister Nirmala Sitharaman to convene a GST Council meeting to discuss these issues. Mitra, a former state finance minister, referred to the central government's admission in the Lok Sabha that Rs 1.15 lakh crore of fraud have been detected from GST invoices between 2018-19 and 2022-23. "I write this letter with great anguish and deep concern. On one hand, GST frauds are proliferating across the country penetrating each and every state. On the other, the web of regulations is so overpowering for the MSMEs, that they are on the verge of deregistering back to their informal status," Mitra said. The humongous' fraud taking place in the country and the suffering of the MSME in the current GST system require a total rethink by the Centre and the GST Council on the

GST evasion of Rs 14,302 cr detected in April-May, 28 persons arrested

As many as 2,784 cases of GST evasion involving Rs 14,302 crore were detected in the first two months of the current fiscal, while Rs 5,716 crore was recovered during the period, Parliament was informed on Monday. Finance Minister Nirmala Sitharaman in a written reply in the Lok Sabha gave details of Goods and Services Tax (GST) and income tax evasion, as well as detection of outright smuggling by the Customs department. As per the data, GST evasion of over Rs 2.68 lakh crore was detected in 43,516 cases between 2020-21 and 2023-24 (April-May). A recovery of Rs 76,333 crore was made during the period while 1,020 persons were arrested. In the current fiscal (April-May), 2,784 cases of evasion of Rs 14,302 crore were detected. As many as 28 persons were arrested and Rs 5,716 crore recovered during the period. As per the statistics on surveys, searches and seizures carried out by the Income Tax Department in the last 5 years, searches were conducted on 3,946 groups while assets worth

CBIC deserves kudos for GST clarificatory circulars

The GST Council has decided to meet again on August 2, 2023, to consider various representations regarding tax rates on services of online gaming, casinos, and horse racing

Not akin to residential units, hostel accommodation to attract 12% GST: AAR

Students will have to shell out more for hostel accommodation as a 12 per cent GST would be applicable on the rent paid, the Authority of Advance Ruling said in two separate cases. The Bengaluru bench of the Authority of Advance Ruling (AAR) said hostels are not akin to residential dwelling units and hence are not exempt from Goods and Services Tax (GST). In an advance Ruling sought by Srisai Luxurious Stay LLP, the AAR said GST exemption was applicable on the accommodation services, of charges up to Rs 1,000/- per day, provided by hotels, clubs, campsites etc. till July 17, 2022. "PG/Hostel Rent paid by inhabitants do not qualify for GST exemption as the services provided by applicant are not akin to renting of residential dwelling for use as residence," the Bengaluru bench said. GST on reverse charge will be applicable on the rental to be paid to the landowners by the applicant as the services of the applicant are leviable to GST and thus the applicant has to obtain GST ...

Top headlines: India ripe for semiconductor boom, banks' loans, and more

Business Standard brings you the top headlines at this hour

Rent on PG accommodation, hostel services to attract GST: Karnataka AAR

Rent for residential dwellings would qualify for GST exemption, says authority

GST officers arrest 3 for fraudulent ITC claims of Rs 557 cr, fake firms

GST officers have unearthed two fake billing rackets involving 246 shell/fake entities involved in fraudulently passing input tax credit (ITC) of Rs 557 crore and arrested three key operatives. Forensic examination of seized laptops and mobile phones of the two masterminds led to the retrieval of ledgers, invoices, e-way bills, etc. Apart from this, WhatsApp chats/ voice messages evidencing the transactions of fake GST bills and illegal cash flow have also been retrieved. An initial probe by GST officers has also indicated the involvement of bank officials in opening bank accounts in the name of fake firms, the finance ministry said. "The Meerut Zonal Unit of Directorate General of GST Intelligence (DGGI) unearthed two major fake billing rackets involving 246 shell/fake entities, which have passed on fraudulent ITC of Rs 557 crore," a finance ministry statement said. One of the rackets had close nexus with fake firms unearthed by Noida Police in June 2023, it added. The finance ..