Government 'Fully Prepared' To Levy 28% GST On Online Gaming: CBIC Chairman
It is necessary for all states to pass the law or come out with an ordinance, Agarwal said.
Ahead of the Oct. 1 deadline for the implementation of 28% GST on casinos, online gaming, and horse racing, the government has indicated that it is prepared to bring into effect the decisions of the 51st GST Council meeting.
The issue of notification regarding the implementation of the GST levy will be undertaken, said Sanjay Kumar Agarwal, chairman of the Central Board of Indirect Taxes.
"We are fully prepared to bring it into effect from October 1. As per the decision taken in the last meeting of the GDT Council, the related notifications are under process," Agarwal said while speaking at the sidelines of an event organised by the Federation of Indian Chambers of Commerce and Industry.
The Central Goods and Services Tax (Amendment) Bill, 2023, and the Integrated Goods and Services Tax (Amendment) Bill, 2023, notifying the amendments from the 51st GST Council meeting, were introduced by Finance Minister Nirmala Sitharaman and passed in the parliament on Aug. 11.
The member states of the council will now have to pass the legislation in their respective legislative assemblies. So far, Karnataka has decided to postpone the approval of the draft ordinance for the GST levy on online gaming, Moneycontrol reported.
"It is necessary for all states to pass the law or come out with an ordinance. Every state needs to pass the required legislation," Agarwal said.
He declined to comment on whether there might be a deferment in the issue of the notification for implementation.
"In the last GST Council meeting, when a decision was taken, at that time it was also mentioned that six months after implementation, a review would be held and the difficulties would be seen at that time," he said.
Speaking on the show cause notices being issued to gaming companies on tax shortfalls, the chairman stated that they are being sent as per legal provision.
"The department is taking a uniform stand in interpretation of the law, and accordingly, SCNs are being issued," Agarwal said.
Government Reviewing Suggestions On Curbing Fake ITC Claims
"The fake ITC issue is quite complex, and the department has received various suggestions regarding the rate and the reverse charge mechanism," Agarwal said.
"As I mentioned in my address also, regarding the fake ITC menace, the government has taken several decisions through the GST Council. As per that, the process that is undertaken for registration has been strengthened. Certain more verifications are being carried out," he said.
