* **Levy of GST on online gaming, casinos, and horse racing:** The bill proposes to levy a GST of 28% on the face value of entry-level bets placed on online gaming platforms, casinos, and horse racing. This is expected to generate an additional revenue of ₹2,200 crore for the government.
* **Increase in threshold for registration:** The bill proposes to increase the threshold for registration under the GST from ₹20 lakh to ₹40 lakh for businesses located in non-metro cities and from ₹10 lakh to ₹20 lakh for businesses located in metro cities. This is expected to benefit small businesses and reduce the compliance burden on them.
* **Relaxation of rules for composition scheme:** The bill proposes to relax the rules for the composition scheme, which is a simplified tax regime for small businesses. Under the relaxed rules, businesses with an annual turnover of up to ₹1.5 crore will be allowed to opt for the composition scheme without having to obtain a GST registration. This is expected to benefit small businesses and make it easier for them to comply with the GST law.
* **Amendments to the GST rules:** The bill also proposes to make a number of amendments to the GST rules, including changes to the rules for refunds, input tax credit, and valuation of goods and services. These amendments are expected to clarify and simplify the GST law and make it easier for businesses to comply with it.
The Central Goods and Services Tax (Amendment) Bill, 2023, is a significant piece of legislation that is expected to have a major impact on the Indian economy. The bill is likely to generate additional revenue for the government, benefit small businesses, and make it easier for businesses to comply with the GST law.
The Central Goods and Services Tax Amendment Bill, 2023 was introduced in the Lok Sabha on August 8, 2023 by the Finance Minister, Nirmala Sitharaman. The Bill seeks to amend the Central Goods and Services Tax Act, 2017 (CGST Act) to provide for levy of GST on the face value of entry-level bets placed on online gaming platforms, casinos, and horse racing.
The key amendments proposed in the Bill are as follows:
* **Levy of GST on online gaming, casinos, and horse racing:** The Bill proposes to levy GST at the rate of 28% on the face value of entry-level bets placed on online gaming platforms, casinos, and horse racing. This will bring these activities into the GST net for the first time.
* **Definition of online gaming:** The Bill defines online gaming as "the activity of playing a game of skill or chance through electronic means". This definition is broad enough to cover a wide range of activities, including poker, rummy, fantasy sports, and esports.
* **Exemption for certain activities:** The Bill exempts certain activities from GST, such as betting on horse races conducted by the Jockey Club of India, and betting on games of skill conducted by the All India Gaming Federation.
* **Composition scheme for small online gaming operators:** The Bill provides for a composition scheme for small online gaming operators with a turnover of up to Rs. 1.5 crore. Under this scheme, operators will be required to pay GST at the rate of 6% of their turnover.
The Bill is expected to be passed by the Parliament in the ongoing Monsoon Session. Once the Bill is passed, it will come into effect from a date to be notified by the government.
In addition to the above, the Bill also proposes some other amendments to the CGST Act, such as:
* **Extension of time limit for filing of annual return:** The Bill proposes to extend the time limit for filing of annual return under the CGST Act from September 30 to December 31.
* **Relaxation of conditions for claiming input tax credit:** The Bill proposes to relax the conditions for claiming input tax credit under the CGST Act. For example, the Bill proposes to allow businesses to claim input tax credit even if the invoice does not contain the GSTIN of the supplier.
* **Increase in threshold limit for registration:** The Bill proposes to increase the threshold limit for registration under the CGST Act from Rs. 20 lakh to Rs. 40 lakh for businesses located in non-special category states.
These amendments are expected to make the GST regime more efficient and user-friendly.
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