India

GST Council Likely To Block Online Games Evading Taxes

In light of growing concerns over the use of digital services for money laundering and tax evasion, the Goods and Services Tax (GST) Council is likely to propose a block on online games that do not adhere to Indian tax laws, according to people with knowledge of the discussions that are likely to be on the table at the next meeting on Wednesday.

On July 11, the GST Council, which consists of the finance ministers of each state and is presided over by the union finance minister, imposed a 28% tax on online games. According to officials, this was necessary because the activity was viewed as a luxury and not an absolute necessity, earning it the highest tax bracket.

Online Games more prone to tax evasion

There have been worries that by operating from abroad, internet gambling platforms would avoid paying GST. However, one official claimed that in these situations, the tax administration will deduct GST from the payment sources.

“Tax management is made relatively straightforward by the 28% GST on the face value of bets rather than gross gaming revenue (GGR). In the case of an offshore platform, tax can be subtracted from the payment sources, the speaker noted. GST on GGR value, or total bets less total wins, will make the system more difficult. “It is difficult to monitor, particularly in cases of overseas players, and prone to manipulations,” he continued.

Also Read: PM Modi Appreciates The Football Revolution Of Shahdol, Specially Mentions Madhya Pradesh In “Mann Ki Baat”

Also Read: Kerela: 5-year-old Girl’s Body Found In Aluva Market, 20 Hours After Being kidnapped

“Suitable amendments” to be made in the law

According to the second official, the Council will discuss any required amendments to the law on Wednesday in order to carry out its judgements from July 11.

Sitharaman, who chairs the council, told the media on July 11 that “suitable amendments” to the law would be made to include horse racing and internet gambling in schedule III as taxable actionable claims.

The officials said, “It is also likely that the Council may approve tweaking of laws so that overseas online gaming entities cannot evade GST if payment is made from India. Tax authorities could also be empowered to block overseas entities for noncompliance.”

Srishti Verma

Recent Posts

PM Modi Meets Bhutan PM Tobgay At BIMSTEC Summit; Highlights Strong Bilateral Ties & Regional Cooperation

PM Narendra Modi met Bhutanese PM Tshering Tobgay on the sidelines of the 6th BIMSTEC…

6 hours ago

Jamia Students Back Waqf Amendment Bill; Call It A Step Toward Empowerment

The student group 'Shaher-E-Arzoo' expressed firm support for the Waqf Amendment Bill, calling it a…

8 hours ago

India’s Exports To The US Face Limited Impact From Tariff Hike: SBI Report

The 27% tariff hike by US President Donald Trump on Indian goods will have only…

8 hours ago

Waqf Freed From Mafia Control, New Era Of Development Begins For Muslims: MRM

Following the passage of the Waqf Amendment Bill 2024 in both Houses of Parliament, celebrations…

9 hours ago

India’s Forex Reserves Surge To $665.4 Billion; Rupee Strengthens As Trade Deficit Narrows

India’s forex reserves jumped $6.6 billion to a five-month high of $665.4 billion for the…

10 hours ago

Laxmi Singh Leads Gautam Buddha Nagar Police To Historic No 1 Rank In IGRS Across All Stations

Gautam Buddha Nagar Police, led by CP Laxmi Singh, achieved a historic feat with all…

11 hours ago