GST UPDATE

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Retrospective GST on e-gaming firms may go

?The Centre plans to remove the "retrospective" application of higher GST on the online gaming industry through an amendment in the Finance Bill, 2024. This aims to alleviate the financial burden on the sector, which has faced significant tax demands, including 71 show-cause notices alleging GST evasion of ?1.12 trillion in FY23 and FY24. 

?The amendment to Section 11A of the Central GST Act would allow the Centre to declare any retrospective levy of GST null and void, potentially regularizing non-levy or short-levy due to prevalent industry practices. 

?This change requires a recommendation from the GST Council, which is currently divided on the issue. The industry contends that prior to October 2023, GST was 18% on gross gaming revenue for "games of skill" and 28% on "games of chance," with the full 28% only clarified in October. 

?The Supreme Court is reviewing petitions from around 30 online gaming firms seeking relief from the retrospective tax levy. Experts believe this amendment could significantly reduce litigation and ease business operations.

LINK:https://www.linkedin.com/pulse/desk-ca-praveen-sharma-series-549-retrospective-gst-mu9oc

CA. Praveen Sharma

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