Valuation Rule for Entry Level Bets on E-gaming is Prospective: FM

Finance minister Nirmala Sitharaman on Tuesday said the valuation rules for levying 28% goods and services tax (GST) on entry level bets on online gaming platforms are prospective in effect.

“The valuation rule to exclude winnings is prospective. So, I hope there is no confusion on that,” Sitharaman said in the Lok Sabha during discussion on the CGST (Second Amendment) Bill.

She was responding to queries raised by Biju Janata Dal MP Sarmistha Sethi.

She added that the clarification on online gaming was already issued. “28% is the tax and as to who it will apply to and on whom the incidence will fall is clearly explained,” Sitharaman added.

In August, the GST Council had clarified that 28% GST is applicable on online gaming and the GST will be levied on entry-level bets on online gaming platforms and not on what players pay in each game from the winning amount. The effective date for the amendments was October 1. While the minister commented on the first part, she did not comment on the demands raised by the tax officials from the online gaming companies with retrospective effect. In September, the Directorate General of GST Intelligence sent notices of over ₹1.12 lakh crore to a host of online gaming companies for alleged short payment of taxes.

The Lok Sabha passed the CGST (Second Amendment) Bill which has extended the age limit for president and members of GSTAT and had ensured advocates with 10 years of experience to become eligible to be member of GST Appellate tribunal.

The Lok Sabha on Tuesday passed a Bill that seeks to give immediate effect to the changes in customs and excise duties announced in the Budget, aimed at curbing speculative activities following changes in customs and excise duties in the Budget.

The House, after a brief discussion on the Provisional Collection of Taxes Bill 2023, passed the Bill by voice vote.

Moving the Bill for passage, Sitharaman said the Provisional Collection of Taxes Bill, 2023 seeks to obtain the authority from Parliament to provisionally levy and collect the newly imposed or increased duties of customs and excise for 75 days. While the changes in rates of income and corporate taxes, incorporated in the Budget announced on February 1, are effective from April 1 or a notified date, most of the changes in customs and excise duty rates become effective from midnight.

S-ET Image source: Google

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