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Delhi Govt To Demand Withdrawal Of 28% Tax On Online Gaming: Atishi

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Union Finance Minister Nirmala Sitharaman is presiding over the 52nd GST Council meeting at the Sushma Swaraj Bhawan in New Delhi on Saturday

 
 
 

Ahead of the 52nd Goods and Services Tax (GST) Council meeting on Saturday, Delhi Finance Minister Atishi criticised the Centre over the imposition of 28 per cent tax on online gaming industry, adding that the Coucil should consider withdrawing the tax evasion notices on companies in the sector.

In an address ahead of the GST Coucil meeting, which is currently in progress in the national capital, Atishi said, “Despite the opposition of the Delhi government, a 28 per cent tax was imposed on the online gaming industry. Even before this tax was imposed, the GST Council sent tax evasion notices worth Rs 1.5 lakh crores to the online gaming industry over the last six years. I am going to take up this issue at the meeting today. Will demand the withdrawal of tax notices to the online gaming sector.”

She added that the online gaming is considered a “sunrise sector” but the decisions being made and implemented by the GST Council will significantly and negatively impact the industry.

“The online gaming sector employs over 50,000 people. Online gaming is considered a sunrise sector in the startup sector, but the GST Council recently took a decision to impose 28 per cent GST on online gaming. It will have a huge impact on this industry,” she added.

Union Finance Minister Nirmala Sitharaman is presiding over the 52nd GST Council meeting at the Sushma Swaraj Bhawan in New Delhi on Saturday.

The meeting is being attended by Union Minister of State for Finance, MP Poonia, along with Finance ministers of various States and Union Territories (with Legislature), as well as senior officials from both the Union government and the states.

The GST Council convenes periodically to deliberate on matters related to the GST regime, including tax rates, policy changes, and administrative issues.

The 52nd meeting is aimed at discussing critical issues affecting the Indian tax system and finding collaborative solutions.

The meeting outcomes are expected to have a significant impact on the country’s economy going forward.

It’s part of the government’s ongoing efforts to refine the GST system to enhance efficiency and promote economic growth.

The decisions and recommendations arising from the 52nd GST Council meeting will be closely watched by various stakeholders, including businesses, policymakers, and the general public, as they have the potential to influence taxation, trade, and overall economic dynamics in the country. (ANI)

 

 

GST 2

Next GST Council Meeting To Take Place On 7 October

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The Goods and Service Tax (GST) Council, chaired by Union finance minister and comprising state ministers, will meet on 7 October.

“The 52nd meeting of the GST Council will be held on 7th October, 2023 at Vigyan Bhawan, New Delhi,” said GST Council in the post on X.

The Goods and Services Tax (GST) rules were amended by the council during its meeting held on 2nd August in order to clarify the taxation of casinos, horse racing, and online gaming.

In the previous meeting, council stated that the 28 per cent GST duty on the face value will remain the same, whether it is a game of skill or chance.

The Council had also suggested including a specific provision in the IGST Act, 2017 that would establish GST liability for the supply of online gambling by an outside supplier to a person in India, a single registration for the said supplier under a streamlined registration process, and the prohibition of public access to any information created, transmitted, received, or stored in any computer resource used for the supply of online gambling.

Delta

Delta Corp Receives Intimation Over Rs 11,139 Bn GST

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Casino operator Delta Corp claimed on Friday that it had got intimation from the Hyderabad-based Directorate General of GST Intelligence over alleged Rs 11,139 crore in taxes. A show cause notice will be sent to the company if the amount is not paid. After the GST Council agreed to levy a 28 per cent tax on online gambling, this tax notice is another setback for Delta Corp.

“The DG Notice advises the Company to pay an alleged tax liability of RS 1,11,39,61,03,423 along with interest and penalty for the period from July 2017 to March 2022, failing which a show cause notice will be issued to the Company under Section 74(1) of the CGST Act, 2017 and Goa SGST Act, 2017,” said the firm.

According to Delta Corp, the amount stated in the notice is based on the total gross bet value of all games played at the casinos during a five-year period.

The industry has long demanded that GST be applied to gross bet value rather than total gaming revenue Rs numerous industry-level representations to the government have previously been made on this matter, it added further.

Delta Corp operates in the casino (live, online Rs electronic) gaming sector. It began as a textiles and real estate consulting firm that was incorporated in 1990, but it has since expanded into a variety of industries, including real estate, internet gambling, casino gaming Rs hotels.

The new 28 per cent GST tax is impacting the gaming industry. Some gaming apps have also said last month that it would fire employees in order to survive the tax.

Since the government proposed the new 28 per cent GST in July, Delta Corp shares have fallen by nearly 29 per cent.