-The government officials clarified that so long as money is involved in a game, govt will make no distinction between a game of skill and a game of chance
-The government has settled Rs 39,785 crore to CGST and Rs 33,188 crore to SGST from IGST
-Exporters of such items will have to approach jurisdictional Tax officers with their refund claims and get them cleared, as per a notification dated July 31
New Delhi, NFAPost: The government officials have clarified that the proposed 28 per cent goods and services tax (GST) on online gaming and casinos is here to stay, The Times of India (ToI) has reported.
Adding on the subject, government sources told the newspaper that levying the tax on the gross value is the way ahead since using any other method leaves the scope for complications in businesses that lack transparency.
As for the gaming industry, companies operating in the online gaming space have been seeking a review from the government. These companies have argued that the imposed tax is too high and will hurt business. However, government sources told ToI that the decision was well-thought and unanimous with all states and the centre on the same page. GST Council is a body that comprises finance ministers of all states along with the union finance minister and has the final say in matters pertaining to rules regarding GST.
Talking about the imposed GST, a govt official was quoted in the report as saying, “Do you want us to deploy an inspector at every table to calculate the earnings of an individual in a casino or see how much cold drink is being consumed at what price? Just like casinos, online gaming is also an opaque business where it is very difficult to break up things and undertake the calculations.”
Making arguments about the nature of the online business, the officials said that tax ‘sin goods’ should be heavily taxed as young children are prone to getting into these games and spending a lot of money. The officials also clarified that so long as money is involved in a game, govt will make no distinction between a game of skill and a game of chance.
Automated IGST refunds on pan masala, tobacco to be restricted from Oct 1
Automated refund of Integrated GST (IGST) on export of pan masala, tobacco, and similar other items will be restricted from October 1, the finance ministry has said.
Exporters of such items will have to approach jurisdictional Tax officers with their refund claims and get them cleared, as per a notification dated July 31.
The changes in the notification will come into effect from October 1.
Tax experts said the move is aimed at checking tax evasion in the sector, as there might be over-valuation of goods which are being exported, thus leading to higher IGST refund outgo.
Manual checking of refunds will ensure that valuation is optimally done and taxes are paid at all stages.
The items on which automated IGST refund restriction has been imposed include pan masala, unmanufactured tobacco, hookah, gutkha, smoking mixtures for pipes and cigarettes and other items, including mentha oil. Such items attract 28 per cent IGST, plus a cess.
AMRG & Associates Senior Partner Rajat Mohan said such restriction on automated refunds for pan masala Tobacco & other similar items would lead to a blip in exporters’ cash flow, reduce global competitiveness in the sector, and increase compliance and administrative burden on the exporters.
Restricting IGST refunds may lead to a temporary increase in tax revenue for the government, as the refund amount will remain with the government for a more extended period.
“India is one of the world’s major exporters of pan masala, primarily to countries in the Middle East, Southeast Asia, and some African nations. Therefore, exporters of pan masala may see a constrained cash flow position in the last quarter of 2023, impacting normal course of business,” Mohan added.
July GST collection comes at Rs 1.65 trillion, rises 11% YoY
The goods and services tax (GST) collection for the month of July came at Rs 1.65 trillion. This is up 11 per cent year-on-year.
Of the Rs 1,65,105 crore, the Central GST is Rs 29,773 crore, State GST is Rs 37,623 crore, Integrated GST is Rs 85,930 crore (including Rs 41,239 crore collected on import of goods) and cess is Rs 11,779 crore (including Rs 840 crore collected on import of goods).
The government has settled Rs 39,785 crore to CGST and Rs 33,188 crore to SGST from IGST. The total revenue of Centre and the states in the month of July 2023 after regular settlement is Rs 69,558 crore for CGST and Rs 70,811 crore for the SGST.
The revenues for the month of July 2023 are 11 per cent higher than the GST revenues in the same month last year. During the month, the revenues from domestic transactions (including import of services) are 15 per cent higher than the revenues from these sources during the same month last year. It is for the fifth time, the gross GST collection has crossed Rs 1.60 trillion mark.
Agencies
