GST Council Meeting: GST Council meeting will be held on October 7, business world expects many amendments


GST Council Meeting:The next meeting of the Goods and Services Tax (GST) Council will be held on October 7. The GST Council has written on the social media platform ‘X’ that the 52nd meeting of the GST Council will be held on October 7, 2023 at Vigyan Bhawan, New Delhi. Before this, the last meeting of the GST Council headed by the Union Finance Minister was held on August 2. In this meeting, amendments to the GST law were approved to provide clarity in taxation on casinos, horse racing and online gaming. Ministers of states were also included in the council. In the last meeting, it was decided to impose 28 percent GST on the total face value of bets on casinos, horse racing and online gaming. In the 52nd meeting of the GST Council, the business world is expecting amendments to encourage the festival market. However, it is not clear from the Council’s side as to which matters can be considered.

28 percent GST will be imposed on online gaming from October 1

In the last meeting of the GST Council, despite the disagreement of Delhi, Goa and Sikkim, it was decided to impose 28 percent tax on the initial amount wagered in online gaming and casinos from October 1. For this taxation, the Central Government had brought a proposal to amend the Central GST Act in the current monsoon session of the Parliament itself. After that, by approving a proposal to this effect in the state assemblies, the way is being prepared to implement it from October 1. However, it was decided in the GST Council meeting that the imposition of GST on online gaming and casinos will be reviewed after six months in April 2024. In this it will be seen whether any change is needed in the rules or not. Modalities related to taxation of online gaming were decided in the 51st meeting of the GST Council held under the chairmanship of Union Finance Minister Nirmala Sitharaman. GST Council is the apex body to decide on issues related to Goods and Services Tax (GST).

Finance Minister explained the mathematics of tax on online games

Finance Minister Nirmala Sitharaman had told that we will bring a proposal to amend the CGST Act in the current Parliament session itself. It will be implemented from October 1st. The Finance Minister said that the tax will be determined based on the amount deposited or paid by the player and will exclude re-betting of winnings from previous games. Giving an example, he said that suppose someone places a bet of Rs 1,000 and he wins Rs 300. Then the same person places a bet of Rs 1,300, then GST will not be charged on the winning amount. Sitharaman said that Delhi, Goa and Sikkim demanded a review of the decision to impose 28 percent tax on online gaming and casinos. However, after getting the support of other states, it was decided to implement this decision.

The decision to impose tax was taken in July

In the GST Council meeting held last month, it was decided to impose GST at the rate of 28 percent on the entire amount wagered in online gaming, casino and horse racing. Sitharaman said that Delhi’s Finance Minister opposed imposing tax on online gaming while Goa and Sikkim wanted the tax to be imposed on the gross gaming revenue (GGR) and not on the entire amount wagered. However, the Finance Minister said that other states including Karnataka, Gujarat, Maharashtra and Uttar Pradesh wanted the decisions taken in the last meeting to be implemented. Revenue Secretary Sanjay Malhotra said that foreign gaming companies will also have to get their GST registration done in India. If they do not do this, the government will use the Information Technology Act to ban their website. Malhotra said that online gaming will be defined by amending the GST law.

what is gst

GST (Goods and Services Tax) is an important tax policy implemented in India. It is a combined goods and services tax, which was implemented by the Government of India on 1 July 2017. GST is applied uniformly across India, leading to no uniformity in the inventory of goods and services between states. Its main objective is to establish a common and simple goods and services tax system by eliminating various pre-goods and services taxes on goods and services. Under GST, the tax rates applicable to goods and services are determined in the inventory. This tax system is divided into three tiers – state, center and consumer. Due to this, financial generation is shared between the state and the centre. Under this, e-way method of transaction of goods and services is followed which is used to share the financial generation with the government. The objective of GST is to establish a simple, editable and convenient tax policy system so that there is no inconsistency in the list of taxes levied on goods and services.

How to register

To get a GST number, first go to the official portal of GST (GST). Click on the service there. After this, select the option of new registration. Fill Part-A of the GST REG-01 form and give all the requested information. Now click on Get OTP. Enter the OTP received on the registered mobile and press OK. After this fill the part two of the form. OTP will come again. Verify the form. Through this process you can register for GST.

Why is it necessary to get GST number

GST number is entered to determine the tax on goods and services in India. This number is necessary to calculate business activities from time to time by government systems.

Why is it necessary to get GST number

  • Tax collection and inventory improvement: Through GST number, the government is trying to control business activities and improve tax collection.

  • Assistance in tax management: GST number is used to communicate the tax collection process of a business or individual structure to the government.

  • Legal Compliance: GST number is used to report individual or business activities as an authorized resident to the government.

  • Identical inventory between goods and services: With GST number, the government is trying to ensure correct inventory of goods and services.

  • To protect against tax failure: GST number provides a useful tool for success and failure in tax collection for business activities.

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