Abhishek Raja "Ram"

Revolutionary Raja Ram for Tax & Economic Reforms

wef 1-Aug-2023 for turnover of Rs. 5 Crores or more for e-invoice is mandatory
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In e-invoicing, businesses have to generate an Invoice Reference Number (IRN) for each unique invoice that contains all the key. [img:EbHOQ7JMW]

51st GST Council recommendations:


Levy of 28% GST on actionable claims in casinos, horse racing, and online gaming. The GST Council has recommended that a uniform rate of 28% GST be levied on actionable claims in casinos, horse racing, and online gaming. 


This rate will be applicable irrespective of whether the activity is categorized as a game of skill or chance.

Valuation of supply of online gaming and actionable claims in casinos. 


The GST Council has also recommended that the valuation of the supply of online gaming and actionable claims in casinos be based on the amount paid or payable to or deposited with the supplier, by or on behalf of the player 


(excluding the amount entered into games/ bets out of winnings of previous games/ bets).


Registration of foreign suppliers of online gaming services. The GST Council has recommended that foreign suppliers of online gaming services be required to register with GST authorities in India. 


This will help to ensure that these suppliers comply with GST laws and pay the appropriate taxes.


Blocking of access to consumers for non-compliant suppliers. The GST Council has also recommended that the government invoke provisions of the Information Technology Act to block access to consumers for suppliers of online gaming services who do not comply with GST laws. 


This will help to prevent these suppliers from evading taxes.

These recommendations are still subject to the approval of the Union Cabinet. However, if they are approved, they will have a significant impact on the online gaming and gambling industry in India.

The gross GST collection in July 2023 was Rs 1,65,105 crore. [img:ObnJLukCv]

Rs 41, 239 Crore is for Import of Goods. Why People are missing this? Our import is more than our Export and this is not a good sign as Developing Economy

This is an 11% increase from the GST collection in July 2022.


The CGST collection was Rs 29,773 crore, the SGST collection was Rs 37,623 crore, the IGST collection was Rs 85,930 crore, and the cess collection was Rs 11,779 crore.


The total revenue of the Centre and states after regular settlement was Rs 69,558 crore and Rs 70,811 crore, respectively.


This is the fifth time that the gross GST collection has crossed the Rs 1.6 lakh crore mark. The previous four times were in April 2023, March 2023, February 2023, and January 2023.

28% levy on casinos, online games to stay: GST Council in its 51st Meeting

The GST Council, which is the highest decision-making body of the GST regime in India, decided on July 13, 2022 i.e, 50th Council Meeting, to levy a 28% GST on casinos, online games, and horse racing.


In its 51st meeting on July 11, 2022, the GST Council decided to levy a 28% GST on the face value of chips bought at casinos and the bet amount for online games. This decision was made despite Delhi, Goa and Sikkim seeking to reopen the issue.


The Council also proposed the mandatory registration of foreign companies with GST authorities in order to tighten the noose around those who may evade tax. 


The government plans to invoke provisions of the Information Technology Act to ensure that access to consumers is blocked for those who do not register.


Here are some of the key points to note about the GST on casinos and online games:

➡️The tax will be levied on the face value of chips bought at casinos and the bet amount for online games.

➡️The tax rate is 28%, which is the highest slab under the GST regime.


➡️The tax will be applicable to both domestic and foreign companies.


➡️Foreign companies will be required to register with GST authorities in order to comply with the law.

➡️The government plans to invoke provisions of the Information Technology Act to ensure that access to consumers is blocked for those who do not register.

From 1st August 2023 for turnover of Rs. 5 Crores or more for e-invoice.

E-invoicing is a system of generating and transmitting invoices in electronic format. 


It is a mandatory requirement for businesses with an aggregate turnover of Rs 5 crore or more under the Goods and Services Tax (GST) regime in India wef 1st August 2023.  


It is a process wherein the invoice data is electronically sent to the GST Network (GSTN) in a standard format, from where it can be shared with other stakeholders like buyers, suppliers and the tax authorities. 


In e-invoicing, businesses have to generate an Invoice Reference Number (IRN) for each unique invoice that contains all the key

GST Collections Hit Rs 1.65 Lakh Crore in July, Highest Since Apri

The GST collections in July were the third highest monthly mop-up after last April (Rs 1,87,035 crore) and April 2022 (Rs 1,67,540 crore). This marks the fifth time when the kitty was more than Rs 1.6 lakh crore.


The implementation of anti-evasion measures by the government, which has led to a decrease in the number of fake invoices being filed is also one of the reasons for higher collection.

The Indian government is taking decisive action to tackle the evasion of GST by offshore gaming platforms. They are determined to level the playing field and ensure fair taxation. 💪🎮


The Finance Ministry has assured that there are sufficient enforcement provisions to take action against these platforms. 

Revenue Secretary Sanjay Malhotra has said that the action could include banning these platforms.


The GST Council will meet on Wednesday to discuss the changes in legislation for levying a uniform 28% GST on online gaming, casinos, and horseracing.

The meeting is also expected to discuss the base value for the applicability of GST.


The government's move is a welcome step to ensure that all gaming platforms, whether domestic or offshore, are paying their fair share of taxes.


 It will also help to level the playing field for domestic gaming companies, which have been at a disadvantage due to the lack of regulation of offshore platforms.

I hope that the GST Council will take strong action against offshore gaming platforms that are evading GST.


This will send a clear message that the government is serious about collecting taxes and ensuring a level playing field for all gaming companies.

I will continue to keep you updated on this issue.

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GST notices from different states make life difficult for many companies


Companies are struggling to deal with increasing GST notices from different state departments as taxation is a centralised function in most companies and they, especially in services companies, find it difficult to segregate businesses per state.


The number of such notices from states, seeking documents and representations as part of tax scrutiny, has increased significantly since the conclusion of GST compensations for states in July 2022.


The number of GST notices from different state departments has increased significantly since the conclusion of GST compensations for states in July 2022. 


This is because the states are now responsible for collecting their own GST revenue, and they are conducting more audits to ensure that companies are complying with the law.


The increase in GST notices has been particularly challenging for companies that centralize their accounting functions. 

These companies often find it difficult to segregate their business activities by state, which is required for GST compliance.


The GST authorities have provided some guidance on how companies can comply with the law, but there are still some challenges that need to be addressed.


🚩Gaming Industry Proposes Different Valuation Methods Ahead Of GST Council Meet

➡️The gaming industry in India has been lobbying the government to revise the valuation method for GST on online gaming. 


➡️The current method, which taxes the full face value of a game at the start of play, is seen as unfair by the industry.


✅The industry has proposed two alternative methods of valuation:

🔺Gross gaming revenue (GGR): This would mean taxing the total amount of money that players wager on a game, regardless of whether they win or lose.


🔺Net deposits: This would mean taxing the difference between the amount of money that players deposit into a gaming account and the amount of money that they withdraw.

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