The GST Council recently made an announcement on the tax structure of popcorn, triggering a flood of online jokes and memes. Watch this report for more details!

India: Netizens React To Popcorn GST With Humour And Criticism

Is this a case of sugar-coating taxes? India's GST Council, chaired by Finance Minister Nirmala Sitharaman, has surprised moviegoers and snack lovers by introducing different rates of Goods and Services Tax (GST) for popcorn. Prepacked salted popcorn will now attract a 12% GST, while caramelized popcorn faces a steep 18%. Earlier, the GST rate was uniformly 5% for all kinds of popcorn. Watch in for more details!



Caramel Popcorn Tax: Nirmala Sitharaman Explains Why Government Levied Extra GST

India’s latest tax hikes have sparked widespread discussions among businesses and consumers. First up, the country’s 32 billion dollar used car market is bracing for a shift. The GST council approved an increase in the GST rate on used cars, including electric vehicles, from 12 percent to 18 percent. Meanwhile, the council also increased the GST rate on caramel popcorn to 18 percent. This decision impacts popcorn sold in cinemas, where caramel popcorn constitutes around 10 percent of total popcorn sales.

GST Hike Sparks Concerns In India’s Pre-owned Car Market

Is this a case of sugar-coating taxes? India's GST Council, chaired by Finance Minister Nirmala Sitharaman, has surprised moviegoers and snack lovers by introducing different rates of Goods and Services Tax (GST) for popcorn. Prepacked salted popcorn will now attract a 12% GST, while caramelized popcorn faces a steep 18%. Earlier, the GST rate was uniformly 5% for all kinds of popcorn. Watch in for more details!

New Delhi, India
GST Council recently clarified the popcorn taxation structure at its 55th meeting on Saturday (Dec 21), in which caramelised, salted and plain popcorn are taxed differently based on their sugar content.
The GST is classified as 5 per cent on unpacked and unlabelled salted popcorn, 12 per cent on pre-packed and labelled ready-to-eat popcorn and 18 per cent on caramelised popcorn. This clarification by Union Finance Minister Nirmala Sitharaman has sparked memes on social media, with several users poking fun at the complex tax calculations and expressing dissatisfaction.
Also read | <a href="https://www.wionews.com/business-economy/55th-gst-council-meeting-key-discussion-points-786140">55th GST council meeting: key discussion points</a>
<h2>Memes flood social media</h2>
A user shared a picture of Nirmala Sitharaman with the caption: If anyone questions this, Nirmala Sitaphalam-G will say “This won’t affect middle class, is popcorn made for middle class?”
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? 5% GST on Non Pre-Packaged Popcorn mixed with salt &amp; spices
? 12% GST on Pre-packaged and labelled Popcorn
? 18% GST on Caramel Popcorn
If anyone questions this, Nirmala Sitaphalam-G will say “This won’t affect middle class, is popcorn made for middle class?” <a href="https://t.co/Xp6M2oHz6S">pic.twitter.com/Xp6M2oHz6S</a>
— Gurudath Shetty Karkala (@GurudathShettyK) <a href="https://twitter.com/GurudathShettyK/status/1870417952295563676?ref_src=twsrc%5Etfw">December 21, 2024</a></blockquote>
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Another meme posted on X by a user criticised the high tax rates.
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18% GST on popcorn ?
18% GST on selling old car ? <a href="https://t.co/B3sAsjTS4l">pic.twitter.com/B3sAsjTS4l</a>
— Ex Bhakt (@exbhakt_) <a href="https://twitter.com/exbhakt_/status/1870469382067093987?ref_src=twsrc%5Etfw">December 21, 2024</a></blockquote>
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A user wrote, “Even Popcorn reaches 18% GST Slab. Next she'll tax air and sunlight,” with a picture of Nirmala Sitharaman sitting on a pile of gold coins as people stand in front of her holding popcorn.
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Even Popcorn reaches 18% GST Slab.
Next she'll tax air and sunlight.<a href="https://twitter.com/hashtag/GSTCouncil?src=hash&amp;ref_src=twsrc%5Etfw">#GSTCouncil</a> <a href="https://t.co/xTpIjfkRve">pic.twitter.com/xTpIjfkRve</a>
— Dr Ranjan (@AAPforNewIndia) <a href="https://twitter.com/AAPforNewIndia/status/1870427043164307808?ref_src=twsrc%5Etfw">December 21, 2024</a></blockquote>
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Another user depicted edited images of Nirmala Sitharaman with different tax slabs of popcorn and wrote, “United by popcorn, divided by GST. Can we add the popcorn with caramel and sugar + made from EXTRA VIRGIN OIL should be taxed at 28%?”
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Even Popcorn reaches 18% GST Slab.
Next she'll tax air and sunlight.<a href="https://twitter.com/hashtag/GSTCouncil?src=hash&amp;ref_src=twsrc%5Etfw">#GSTCouncil</a> <a href="https://t.co/xTpIjfkRve">pic.twitter.com/xTpIjfkRve</a>
— Dr Ranjan (@AAPforNewIndia) <a href="https://twitter.com/AAPforNewIndia/status/1870427043164307808?ref_src=twsrc%5Etfw">December 21, 2024</a></blockquote>
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A user hilariously questioned what the GST would be for a popcorn pack that has a mix of both salted and caramel popcorn while sharing an image of it.
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If salted popcorn is taxed at 5% GST and caramel popcorn at 18% GST, what will be the GST rate for this flavor : <a href="https://t.co/yFRvPOejvv">pic.twitter.com/yFRvPOejvv</a>
— THE SKIN DOCTOR (@theskindoctor13) <a href="https://twitter.com/theskindoctor13/status/1870527095102922848?ref_src=twsrc%5Etfw">December 21, 2024</a></blockquote>
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Also read | <a href="https://www.wionews.com/entertainment/shocking-sunny-leones-name-in-chattisgarh-fraud-case-for-married-women-786086">Shocking! Sunny Leone's name in Chattisgarh fraud case for married women</a>
“How much tax to use this Meme?” a user satirically wrote while sharing a GIF of a person eating popcorn.
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How much tax to use this Meme ?<a href="https://twitter.com/hashtag/PopcornTax?src=hash&amp;ref_src=twsrc%5Etfw">#PopcornTax</a> <a href="https://t.co/4Yx1dTv7FK">pic.twitter.com/4Yx1dTv7FK</a>
— Rahul (@42pi) <a href="https://twitter.com/42pi/status/1870514096279544247?ref_src=twsrc%5Etfw">December 21, 2024</a></blockquote>
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An X handle that shares memes, poked fun at the intricate taxation for different flavours of popcorn while imagining a GST slab on masala dosa.
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We are planning to make some changes on GST rates of Masala Dosa. The slabs will be as follows:
Plain Masala Dosa - 9% GST
Masala Dosa with Aloo Bhaji - 12% GST
Masala with Aloo Bhaji, Chutney and Sambar - 18% GST <a href="https://t.co/1jsHhE442U">pic.twitter.com/1jsHhE442U</a>
— Jawaharlal Nehru (@The_Nehru) <a href="https://twitter.com/The_Nehru/status/1870498314216706397?ref_src=twsrc%5Etfw">December 21, 2024</a></blockquote>
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“Modi ji even found a way to tax timepass!” another user wrote while sharing a GIF of a deer chewing popcorn referring to the fact that people sometimes munch on popcorn in their free time.
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Breaking: Popcorn Ka GST Tadka?
5% GST for the aam janta,
12% GST for the khaas janta,
18% GST for the elite janta enjoying caramel!
Modi ji even found a way to tax timepass! <a href="https://twitter.com/hashtag/PopcornPolitics?src=hash&amp;ref_src=twsrc%5Etfw">#PopcornPolitics</a> <a href="https://t.co/3iQLN8daFY">pic.twitter.com/3iQLN8daFY</a>
— Rais Shaikh (@rais_shk) <a href="https://twitter.com/rais_shk/status/1870463141190242422?ref_src=twsrc%5Etfw">December 21, 2024</a></blockquote>
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Some memes also surfaced on social media criticising the tax on used cars.
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“If you wanna sell your used car, pay me 18% GST first, otherwise I won’t allow you to sell”
- Nirmala Sitaphalam-G Aka Vasooli Behan <a href="https://t.co/Yp59gDG9i3">pic.twitter.com/Yp59gDG9i3</a>
— Gurudath Shetty Karkala (@GurudathShettyK) <a href="https://twitter.com/GurudathShettyK/status/1870647461985046773?ref_src=twsrc%5Etfw">December 22, 2024</a></blockquote>
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(With inputs from agencies)

The GST is classified as 5 per cent on unpacked and unlabelled salted popcorn, 12 per cent on pre-packed and labelled ready-to-eat popcorn and 18 per cent on caramelised popcorn



New Delhi, India GST Council recently clarified the popcorn taxation structure at its 55th meeting on Saturday (Dec 21), in which caramelised, salted and plain popcorn are taxed differently based on their sugar content. The GST is classified as 5 per cent on unpacked and unlabelled salted popcorn, 12 per cent on pre-packed and labelled ready-to-eat popcorn and 18 per cent on caramelised popcorn. This clarification by Union Finance Minister Nirmala Sitharaman has sparked memes on social media, with several users poking fun at the complex tax calculations and expressing dissatisfaction. Also read | 55th GST council meeting: key discussion points Memes flood social media A user shared a picture of Nirmala Sitharaman with the caption: If anyone questions this, Nirmala Sitaphalam-G will say “This won’t affect middle class, is popcorn made for middle class?” ? 5% GST on Non Pre-Packaged Popcorn mixed with salt & spices ? 12% GST on Pre-packaged and labelled Popcorn ? 18% GST on Caramel Popcorn If anyone questions this, Nirmala Sitaphalam-G will say “This won’t affect middle class, is popcorn made for middle class?” pic.twitter.com/Xp6M2oHz6S — Gurudath Shetty Karkala (@GurudathShettyK) December 21, 2024 × Another meme posted on X by a user criticised the high tax rates. 18% GST on popcorn ? 18% GST on selling old car ? pic.twitter.com/B3sAsjTS4l — Ex Bhakt (@exbhakt_) December 21, 2024 × A user wrote, “Even Popcorn reaches 18% GST Slab. Next she'll tax air and sunlight,” with a picture of Nirmala Sitharaman sitting on a pile of gold coins as people stand in front of her holding popcorn. Even Popcorn reaches 18% GST Slab. Next she'll tax air and sunlight.#GSTCouncil pic.twitter.com/xTpIjfkRve — Dr Ranjan (@AAPforNewIndia) December 21, 2024 × Another user depicted edited images of Nirmala Sitharaman with different tax slabs of popcorn and wrote, “United by popcorn, divided by GST. Can we add the popcorn with caramel and sugar + made from EXTRA VIRGIN OIL should be taxed at 28%?” Even Popcorn reaches 18% GST Slab. Next she'll tax air and sunlight.#GSTCouncil pic.twitter.com/xTpIjfkRve — Dr Ranjan (@AAPforNewIndia) December 21, 2024 × A user hilariously questioned what the GST would be for a popcorn pack that has a mix of both salted and caramel popcorn while sharing an image of it. If salted popcorn is taxed at 5% GST and caramel popcorn at 18% GST, what will be the GST rate for this flavor : pic.twitter.com/yFRvPOejvv — THE SKIN DOCTOR (@theskindoctor13) December 21, 2024 × Also read | Shocking! Sunny Leone's name in Chattisgarh fraud case for married women “How much tax to use this Meme?” a user satirically wrote while sharing a GIF of a person eating popcorn. How much tax to use this Meme ?#PopcornTax pic.twitter.com/4Yx1dTv7FK — Rahul (@42pi) December 21, 2024 × An X handle that shares memes, poked fun at the intricate taxation for different flavours of popcorn while imagining a GST slab on masala dosa. We are planning to make some changes on GST rates of Masala Dosa. The slabs will be as follows: Plain Masala Dosa - 9% GST Masala Dosa with Aloo Bhaji - 12% GST Masala with Aloo Bhaji, Chutney and Sambar - 18% GST pic.twitter.com/1jsHhE442U — Jawaharlal Nehru (@The_Nehru) December 21, 2024 × “Modi ji even found a way to tax timepass!” another user wrote while sharing a GIF of a deer chewing popcorn referring to the fact that people sometimes munch on popcorn in their free time. Breaking: Popcorn Ka GST Tadka? 5% GST for the aam janta, 12% GST for the khaas janta, 18% GST for the elite janta enjoying caramel! Modi ji even found a way to tax timepass! #PopcornPolitics pic.twitter.com/3iQLN8daFY — Rais Shaikh (@rais_shk) December 21, 2024 × Some memes also surfaced on social media criticising the tax on used cars. “If you wanna sell your used car, pay me 18% GST first, otherwise I won’t allow you to sell” - Nirmala Sitaphalam-G Aka Vasooli Behan pic.twitter.com/Yp59gDG9i3 — Gurudath Shetty Karkala (@GurudathShettyK) December 22, 2024 × (With inputs from agencies)

Memes take social media by storm amid clarification over 18% GST on caramelised popcorn

New Delhi, India
Following the Goods and Services Tax (GST) Council’s clarification on the three different tax slabs for popcorn, Congress called it an “absurdity” and highlighted the system's increasing complexity on Sunday (Dec 22). The party also questioned whether Prime Minister Narendra Modi and the Finance Ministry will show the courage to launch a remodelled GST 2.0.
On Saturday (Dec 21), Finance Minister Nirmala Sitharaman clarified the tax breakup of different types of popcorn during the GST Council, a video of which has gone viral on social media, sparking memes.
In the video, Sitharaman explains that ready-to-eat popcorn that has salt and spices is classified as ‘namkeens’ and attracts five per cent GST and 12 per cent on the pre-packaged and labelled ones. However, caramelised popcorn will attract 18 per cent GST as it is mixed with sugar.
Also read | <a href="https://www.wionews.com/india-news/memes-take-social-media-by-storm-as-gst-council-clarifies-18-gst-on-caramelised-popcorn-786150">Memes take social media by storm as GST Council clarifies 18% GST on caramelised popcorn</a>
“When popcorn is mixed with sugar thereby changing its character to sugar confectionary (Ex: caramel popcorn), it would be classifiable under HS 1704 90 90 [sugar confectionary] and attract 18 per cent GST,” Sitharaman said in the press briefing.
“When you talk outside it looks silly… but during discussions with states in Fitment Committee on every item, it is clearly mentioned that things with added sugar are treated differently… be it drinks, carbonated drinks, juice… whatever has added sugar. This is why, till the time popcorn is salted, it attracts five per cent GST. But when it has added caramelised sugar, it is no longer namkeen, hence, its rate is different,” Sitharaman added.
<h2>Congress criticises the GST system</h2>
On Sunday (Dec 22), Congress general secretary in-charge communications Jairam Ramesh said that there is significant GST evasion. He also said that input tax credit fraud is common and many fraudulent companies have come up to “game” the GST system.
Also read | <a href="https://www.wionews.com/india-news/pm-modis-historic-visit-to-kuwait-a-new-era-for-stronger-ties-between-india-kuwait-relations-785961">Indian PM Modi conferred with Kuwait's highest honour, The Order of Mubarak Al Kabeer</a>
“The absurdity of three different tax slabs for popcorn under GST, which has unleashed a tsunami of memes on social media, only brings to light a deeper issue: the growing complexity of a system that was supposed to be a Good and Simple Tax,” he said in a post on X.
“Tracking of supply chains is weak, the registration process is flawed, advantages are being taken of loopholes in turnover exemptions, compliance requirements are still cumbersome, and misclassification of goods is frequent. Recent data on tax frauds uncovered by the Directorate General of GST Intelligence (DGGI) reveal GST evasion of Rs 2.01 lakh crore in FY24,” he described. 
“With the Union Budget now just 40 days away, will the PM and FM summon the courage to launch a complete overhaul and institute a GST 2.0?” Ramesh asked.
(With inputs from agencies)

Congress general secretary in-charge communications Jairam Ramesh said on Sunday (Dec 22) that there is significant GST evasion. He also said that input tax credit fraud is common and many fraudulent companies have come up to “game” the GST system



New Delhi, India Following the Goods and Services Tax (GST) Council’s clarification on the three different tax slabs for popcorn, Congress called it an “absurdity” and highlighted the system's increasing complexity on Sunday (Dec 22). The party also questioned whether Prime Minister Narendra Modi and the Finance Ministry will show the courage to launch a remodelled GST 2.0. On Saturday (Dec 21), Finance Minister Nirmala Sitharaman clarified the tax breakup of different types of popcorn during the GST Council, a video of which has gone viral on social media, sparking memes. In the video, Sitharaman explains that ready-to-eat popcorn that has salt and spices is classified as ‘namkeens’ and attracts five per cent GST and 12 per cent on the pre-packaged and labelled ones. However, caramelised popcorn will attract 18 per cent GST as it is mixed with sugar. Also read | Memes take social media by storm as GST Council clarifies 18% GST on caramelised popcorn “When popcorn is mixed with sugar thereby changing its character to sugar confectionary (Ex: caramel popcorn), it would be classifiable under HS 1704 90 90 [sugar confectionary] and attract 18 per cent GST,” Sitharaman said in the press briefing. “When you talk outside it looks silly… but during discussions with states in Fitment Committee on every item, it is clearly mentioned that things with added sugar are treated differently… be it drinks, carbonated drinks, juice… whatever has added sugar. This is why, till the time popcorn is salted, it attracts five per cent GST. But when it has added caramelised sugar, it is no longer namkeen, hence, its rate is different,” Sitharaman added. Congress criticises the GST system On Sunday (Dec 22), Congress general secretary in-charge communications Jairam Ramesh said that there is significant GST evasion. He also said that input tax credit fraud is common and many fraudulent companies have come up to “game” the GST system. Also read | Indian PM Modi conferred with Kuwait's highest honour, The Order of Mubarak Al Kabeer “The absurdity of three different tax slabs for popcorn under GST, which has unleashed a tsunami of memes on social media, only brings to light a deeper issue: the growing complexity of a system that was supposed to be a Good and Simple Tax,” he said in a post on X. “Tracking of supply chains is weak, the registration process is flawed, advantages are being taken of loopholes in turnover exemptions, compliance requirements are still cumbersome, and misclassification of goods is frequent. Recent data on tax frauds uncovered by the Directorate General of GST Intelligence (DGGI) reveal GST evasion of Rs 2.01 lakh crore in FY24,” he described. “With the Union Budget now just 40 days away, will the PM and FM summon the courage to launch a complete overhaul and institute a GST 2.0?” Ramesh asked. (With inputs from agencies)

Congress criticises govt over caramel popcorn GST, asks if PM will show courage for GST overhaul

GST Council recently clarified the popcorn taxation structure at its 55th meeting on Saturday (Dec 21), in which caramelised, salted and plain popcorn are taxed differently based on their sugar content.

The GST is classified as 5 per cent on unpacked and unlabelled salted popcorn, 12 per cent on pre-packed and labelled ready-to-eat popcorn and 18 per cent on caramelised popcorn. This clarification by Union Finance Minister Nirmala Sitharaman has sparked memes on social media, with several users poking fun at the complex tax calculations and expressing dissatisfaction.

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/55th-gst-council-meeting-key-discussion-points-786140">55th GST council meeting: key discussion points</a>

<h2>Memes flood social media</h2>

A user shared&nbsp;a picture of Nirmala Sitharaman with the caption: If anyone questions this, Nirmala Sitaphalam-G will say “This won’t affect middle class, is popcorn made for middle class?”

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📌 5% GST on Non Pre-Packaged Popcorn mixed with salt &amp; spices 
 
📌 12% GST on Pre-packaged and labelled Popcorn 
 
📌 18% GST on Caramel Popcorn 
 
If anyone questions this, Nirmala Sitaphalam-G will say “This won’t affect middle class, is popcorn made for middle class?” <a href="https://t.co/Xp6M2oHz6S">pic.twitter.com/Xp6M2oHz6S</a>
— Gurudath Shetty Karkala (@GurudathShettyK) <a href="https://twitter.com/GurudathShettyK/status/1870417952295563676?ref_src=twsrc%5Etfw">December 21, 2024</a></blockquote>
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Another meme posted on X by a user criticised the high tax rates.

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18% GST on popcorn 🍿 
 
18% GST on selling old car 🚗 <a href="https://t.co/B3sAsjTS4l">pic.twitter.com/B3sAsjTS4l</a>
— Ex Bhakt (@exbhakt_) <a href="https://twitter.com/exbhakt_/status/1870469382067093987?ref_src=twsrc%5Etfw">December 21, 2024</a></blockquote>
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A user wrote, “Even Popcorn reaches 18% GST Slab. Next she'll tax air and sunlight,” with a picture of Nirmala Sitharaman sitting on a pile of gold coins as people stand in front of her holding popcorn.

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Even Popcorn reaches 18% GST Slab. 
 
Next she'll tax air and sunlight.<a href="https://twitter.com/hashtag/GSTCouncil?src=hash&amp;ref_src=twsrc%5Etfw">#GSTCouncil</a> <a href="https://t.co/xTpIjfkRve">pic.twitter.com/xTpIjfkRve</a>
— Dr Ranjan (@AAPforNewIndia) <a href="https://twitter.com/AAPforNewIndia/status/1870427043164307808?ref_src=twsrc%5Etfw">December 21, 2024</a></blockquote>
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Another user depicted&nbsp;edited images of Nirmala Sitharaman with different tax slabs of popcorn and wrote, “United by popcorn, divided by GST. Can we add the popcorn with caramel and sugar + made from EXTRA VIRGIN OIL should be taxed at 28%?”

<div class="ui-state-default" contenteditable="false">
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Even Popcorn reaches 18% GST Slab. 
 
Next she'll tax air and sunlight.<a href="https://twitter.com/hashtag/GSTCouncil?src=hash&amp;ref_src=twsrc%5Etfw">#GSTCouncil</a> <a href="https://t.co/xTpIjfkRve">pic.twitter.com/xTpIjfkRve</a>
— Dr Ranjan (@AAPforNewIndia) <a href="https://twitter.com/AAPforNewIndia/status/1870427043164307808?ref_src=twsrc%5Etfw">December 21, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
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A user hilariously questioned&nbsp;what the GST would be for a popcorn pack that has a mix of both salted and caramel popcorn while sharing an image of it.

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If salted popcorn is taxed at 5% GST and caramel popcorn at 18% GST, what will be the GST rate for this flavor : <a href="https://t.co/yFRvPOejvv">pic.twitter.com/yFRvPOejvv</a>
— THE SKIN DOCTOR (@theskindoctor13) <a href="https://twitter.com/theskindoctor13/status/1870527095102922848?ref_src=twsrc%5Etfw">December 21, 2024</a></blockquote>
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Also read |&nbsp;<a href="https://www.wionews.com/entertainment/shocking-sunny-leones-name-in-chattisgarh-fraud-case-for-married-women-786086">Shocking! Sunny Leone's name in Chattisgarh fraud case for married women</a>

“How much tax to use this Meme?” a user satirically wrote&nbsp;while sharing a GIF of a person eating popcorn.

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How much tax to use this Meme ?<a href="https://twitter.com/hashtag/PopcornTax?src=hash&amp;ref_src=twsrc%5Etfw">#PopcornTax</a> <a href="https://t.co/4Yx1dTv7FK">pic.twitter.com/4Yx1dTv7FK</a>
— Rahul (@42pi) <a href="https://twitter.com/42pi/status/1870514096279544247?ref_src=twsrc%5Etfw">December 21, 2024</a></blockquote>
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An X handle that shares memes, poked&nbsp;fun at the intricate taxation for different flavours of popcorn while imagining a GST slab on masala dosa.

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We are planning to make some changes on GST rates of Masala Dosa. The slabs will be as follows: 
 
Plain Masala Dosa - 9% GST 
 
Masala Dosa with Aloo Bhaji - 12% GST 
 
Masala with Aloo Bhaji, Chutney and Sambar - 18% GST <a href="https://t.co/1jsHhE442U">pic.twitter.com/1jsHhE442U</a>
— Jawaharlal Nehru (@The_Nehru) <a href="https://twitter.com/The_Nehru/status/1870498314216706397?ref_src=twsrc%5Etfw">December 21, 2024</a></blockquote>
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“Modi ji even found a way to tax timepass!” another user wrote&nbsp;while sharing a GIF of a deer chewing popcorn referring to the fact that people sometimes munch on popcorn in their free time.

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Breaking: Popcorn Ka GST Tadka🍿 
 
5% GST for the aam janta, 
12% GST for the khaas janta, 
18% GST for the elite janta enjoying caramel! 
 
Modi ji even found a way to tax timepass! <a href="https://twitter.com/hashtag/PopcornPolitics?src=hash&amp;ref_src=twsrc%5Etfw">#PopcornPolitics</a> <a href="https://t.co/3iQLN8daFY">pic.twitter.com/3iQLN8daFY</a>
— Rais Shaikh (@rais_shk) <a href="https://twitter.com/rais_shk/status/1870463141190242422?ref_src=twsrc%5Etfw">December 21, 2024</a></blockquote>
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Some memes also surfaced on social media criticising the tax on used cars.

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“If you wanna sell your used car, pay me 18% GST first, otherwise I won’t allow you to sell” 
 
- Nirmala Sitaphalam-G Aka Vasooli Behan <a href="https://t.co/Yp59gDG9i3">pic.twitter.com/Yp59gDG9i3</a>
— Gurudath Shetty Karkala (@GurudathShettyK) <a href="https://twitter.com/GurudathShettyK/status/1870647461985046773?ref_src=twsrc%5Etfw">December 22, 2024</a></blockquote>
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(With inputs from agencies)

GST Council recently clarified the popcorn taxation structure at its 55th meeting on Saturday (Dec 21), in which caramelised, salted and plain popcorn are taxed differently based on their sugar content.

GST Council recently clarified the popcorn taxation structure at its 55th meeting on Saturday (Dec 21), in which caramelised, salted and plain popcorn are taxed differently based on their sugar content. The GST is classified as 5 per cent on unpacked and unlabelled salted popcorn, 12 per cent on pre-packed and labelled ready-to-eat popcorn and 18 per cent on caramelised popcorn. This clarification by Union Finance Minister Nirmala Sitharaman has sparked memes on social media, with several users poking fun at the complex tax calculations and expressing dissatisfaction. Also read | 55th GST council meeting: key discussion points Memes flood social media A user shared a picture of Nirmala Sitharaman with the caption: If anyone questions this, Nirmala Sitaphalam-G will say “This won’t affect middle class, is popcorn made for middle class?” 📌 5% GST on Non Pre-Packaged Popcorn mixed with salt & spices 📌 12% GST on Pre-packaged and labelled Popcorn 📌 18% GST on Caramel Popcorn If anyone questions this, Nirmala Sitaphalam-G will say “This won’t affect middle class, is popcorn made for middle class?” pic.twitter.com/Xp6M2oHz6S — Gurudath Shetty Karkala (@GurudathShettyK) December 21, 2024 × Another meme posted on X by a user criticised the high tax rates. 18% GST on popcorn 🍿 18% GST on selling old car 🚗 pic.twitter.com/B3sAsjTS4l — Ex Bhakt (@exbhakt_) December 21, 2024 × A user wrote, “Even Popcorn reaches 18% GST Slab. Next she'll tax air and sunlight,” with a picture of Nirmala Sitharaman sitting on a pile of gold coins as people stand in front of her holding popcorn. Even Popcorn reaches 18% GST Slab. Next she'll tax air and sunlight.#GSTCouncil pic.twitter.com/xTpIjfkRve — Dr Ranjan (@AAPforNewIndia) December 21, 2024 × Another user depicted edited images of Nirmala Sitharaman with different tax slabs of popcorn and wrote, “United by popcorn, divided by GST. Can we add the popcorn with caramel and sugar + made from EXTRA VIRGIN OIL should be taxed at 28%?” Even Popcorn reaches 18% GST Slab. Next she'll tax air and sunlight.#GSTCouncil pic.twitter.com/xTpIjfkRve — Dr Ranjan (@AAPforNewIndia) December 21, 2024 × A user hilariously questioned what the GST would be for a popcorn pack that has a mix of both salted and caramel popcorn while sharing an image of it. If salted popcorn is taxed at 5% GST and caramel popcorn at 18% GST, what will be the GST rate for this flavor : pic.twitter.com/yFRvPOejvv — THE SKIN DOCTOR (@theskindoctor13) December 21, 2024 × Also read | Shocking! Sunny Leone's name in Chattisgarh fraud case for married women “How much tax to use this Meme?” a user satirically wrote while sharing a GIF of a person eating popcorn. How much tax to use this Meme ?#PopcornTax pic.twitter.com/4Yx1dTv7FK — Rahul (@42pi) December 21, 2024 × An X handle that shares memes, poked fun at the intricate taxation for different flavours of popcorn while imagining a GST slab on masala dosa. We are planning to make some changes on GST rates of Masala Dosa. The slabs will be as follows: Plain Masala Dosa - 9% GST Masala Dosa with Aloo Bhaji - 12% GST Masala with Aloo Bhaji, Chutney and Sambar - 18% GST pic.twitter.com/1jsHhE442U — Jawaharlal Nehru (@The_Nehru) December 21, 2024 × “Modi ji even found a way to tax timepass!” another user wrote while sharing a GIF of a deer chewing popcorn referring to the fact that people sometimes munch on popcorn in their free time. Breaking: Popcorn Ka GST Tadka🍿 5% GST for the aam janta, 12% GST for the khaas janta, 18% GST for the elite janta enjoying caramel! Modi ji even found a way to tax timepass! #PopcornPolitics pic.twitter.com/3iQLN8daFY — Rais Shaikh (@rais_shk) December 21, 2024 × Some memes also surfaced on social media criticising the tax on used cars. “If you wanna sell your used car, pay me 18% GST first, otherwise I won’t allow you to sell” - Nirmala Sitaphalam-G Aka Vasooli Behan pic.twitter.com/Yp59gDG9i3 — Gurudath Shetty Karkala (@GurudathShettyK) December 22, 2024 × (With inputs from agencies)

Following the Goods and Services Tax (GST) Council’s clarification on the three different tax slabs for popcorn, Congress called it an “absurdity”&nbsp;and highlighted the system's increasing complexity on Sunday (Dec 22). The party also questioned whether Prime Minister Narendra Modi and the Finance Ministry will show the courage to launch a remodelled GST 2.0.

On Saturday (Dec 21), Finance Minister Nirmala Sitharaman clarified the tax breakup of different types of popcorn during the GST Council, a video of which has gone viral on social media, sparking memes.

In the video, Sitharaman explains that ready-to-eat popcorn that has salt and spices is classified as ‘namkeens’ and attracts five per cent GST and 12 per cent on the pre-packaged and labelled ones. However, caramelised popcorn will attract 18 per cent GST as it is mixed with sugar.

Also read |&nbsp;<a href="https://www.wionews.com/india-news/memes-take-social-media-by-storm-as-gst-council-clarifies-18-gst-on-caramelised-popcorn-786150">Memes take social media by storm as GST Council clarifies 18% GST on caramelised popcorn</a>

“When popcorn is mixed with sugar thereby changing its character to sugar confectionary (Ex: caramel popcorn), it would be classifiable under HS 1704 90 90 [sugar confectionary] and attract 18 per cent GST,” Sitharaman said in the press briefing.

“When you talk outside it looks silly… but during discussions with states in Fitment Committee on every item, it is clearly mentioned that things with added sugar are treated differently… be it drinks, carbonated drinks, juice… whatever has added sugar. This is why, till the time popcorn is salted, it attracts five per cent GST. But when it has added caramelised sugar, it is no longer namkeen, hence, its rate is different,” Sitharaman added.

<h2>Congress criticises the GST system</h2>

On Sunday (Dec 22), Congress general secretary in-charge communications Jairam Ramesh said that there is significant GST evasion. He also said that input tax credit fraud is common and many fraudulent companies have come up to “game” the GST system.

Also read |&nbsp;<a href="https://www.wionews.com/india-news/pm-modis-historic-visit-to-kuwait-a-new-era-for-stronger-ties-between-india-kuwait-relations-785961">Indian PM Modi conferred with Kuwait's highest honour, The Order of Mubarak Al Kabeer</a>

“The absurdity of three different tax slabs for popcorn under GST, which has unleashed a tsunami of memes on social media, only brings to light a deeper issue: the growing complexity of a system that was supposed to be a Good and Simple Tax,” he said in a post on X.

“Tracking of supply chains is weak, the registration process is flawed, advantages are being taken of loopholes in turnover exemptions, compliance requirements are still cumbersome, and misclassification of goods is frequent. Recent data on tax frauds uncovered by the Directorate General of GST Intelligence (DGGI) reveal GST evasion of Rs 2.01 lakh crore in FY24,” he described.&nbsp;

“With the Union Budget now just 40 days away, will the PM and FM summon the courage to launch a complete overhaul and institute a GST 2.0?” Ramesh asked.

(With inputs from agencies)

Following the Goods and Services Tax (GST) Council’s clarification on the three different tax slabs for popcorn, Congress called it an “absurdity” and highlighted the system's increasing complexity on Sunday (Dec 22).

Following the Goods and Services Tax (GST) Council’s clarification on the three different tax slabs for popcorn, Congress called it an “absurdity” and highlighted the system's increasing complexity on Sunday (Dec 22). The party also questioned whether Prime Minister Narendra Modi and the Finance Ministry will show the courage to launch a remodelled GST 2.0. On Saturday (Dec 21), Finance Minister Nirmala Sitharaman clarified the tax breakup of different types of popcorn during the GST Council, a video of which has gone viral on social media, sparking memes. In the video, Sitharaman explains that ready-to-eat popcorn that has salt and spices is classified as ‘namkeens’ and attracts five per cent GST and 12 per cent on the pre-packaged and labelled ones. However, caramelised popcorn will attract 18 per cent GST as it is mixed with sugar. Also read | Memes take social media by storm as GST Council clarifies 18% GST on caramelised popcorn “When popcorn is mixed with sugar thereby changing its character to sugar confectionary (Ex: caramel popcorn), it would be classifiable under HS 1704 90 90 [sugar confectionary] and attract 18 per cent GST,” Sitharaman said in the press briefing. “When you talk outside it looks silly… but during discussions with states in Fitment Committee on every item, it is clearly mentioned that things with added sugar are treated differently… be it drinks, carbonated drinks, juice… whatever has added sugar. This is why, till the time popcorn is salted, it attracts five per cent GST. But when it has added caramelised sugar, it is no longer namkeen, hence, its rate is different,” Sitharaman added. Congress criticises the GST system On Sunday (Dec 22), Congress general secretary in-charge communications Jairam Ramesh said that there is significant GST evasion. He also said that input tax credit fraud is common and many fraudulent companies have come up to “game” the GST system. Also read | Indian PM Modi conferred with Kuwait's highest honour, The Order of Mubarak Al Kabeer “The absurdity of three different tax slabs for popcorn under GST, which has unleashed a tsunami of memes on social media, only brings to light a deeper issue: the growing complexity of a system that was supposed to be a Good and Simple Tax,” he said in a post on X. “Tracking of supply chains is weak, the registration process is flawed, advantages are being taken of loopholes in turnover exemptions, compliance requirements are still cumbersome, and misclassification of goods is frequent. Recent data on tax frauds uncovered by the Directorate General of GST Intelligence (DGGI) reveal GST evasion of Rs 2.01 lakh crore in FY24,” he described. “With the Union Budget now just 40 days away, will the PM and FM summon the courage to launch a complete overhaul and institute a GST 2.0?” Ramesh asked. (With inputs from agencies)

Seen as a concerning development, tax evasion under the Goods and Services Tax (GST) regime has surged to a staggering Rs 2.01 lakh crore for the financial year 2023-24, nearly doubling from Rs 1.01 lakh crore in the previous fiscal year. This alarming increase, as reported by the Directorate General of GST Intelligence (DGGI), underscores the growing challenge in GST enforcement and the urgent need for stricter measures to curb this trend.

The DGGI report has identified the online gaming and banking, financial services, and insurance (BFSI) sectors as the most susceptible to GST evasion. The online gaming sector alone accounted for a massive Rs 81,875 crore in evasion, while the BFSI sector saw Rs 18,961 crore in evasion. Among goods, the iron, copper, scrap, and alloys sectors faced Rs 16,806 crore in evasion, with pan masala, tobacco, cigarette, and beedi following at Rs 5,794 crore as detailed in a PTI report.

&nbsp;Evasion capital: Mumbai takes the lead<o:p></o:p>

Mumbai has emerged as the highest zone for GST evasion detection, with a total of Rs 70,985 crore, followed by Delhi at Rs 18,313 crore, Pune at Rs 17,328 crore, Gurugram at Rs 15,502 crore, and Hyderabad at Rs 11,081 crore. This concentration of evasion in major metropolitan areas highlights the need for enhanced monitoring and enforcement measures in these regions.

The breakdown of evasion types showed that non-payment of tax, including clandestine supply and undervaluation, constituted 46 per cent of cases, followed by fake input tax credit at 20 per cent and wrong or non-reversal of ITC or blocked credit at 19 per cent. These findings underscore the various methods employed by businesses and individuals to evade their tax obligations.

A steady rise in GST evasion since the introduction<o:p></o:p>

Since the introduction of GST in 2017, detected evasion has been steadily increasing, with previous figures of Rs 7,879 crore in 2017-18, Rs 19,319 crore in 2018-19, Rs 21,739 crore in 2019-20, Rs 31,908 crore in 2020-21, and Rs 50,325 crore in 2021-22. This consistent upward trend highlights the need for continuous improvement in GST enforcement mechanisms and the implementation of robust anti-evasion strategies.

Signals need for stricter regulations and enforcement<o:p></o:p>

The alarming rise in GST evasion, reaching over Rs 2.37 lakh crore across 20,576 cases in FY24, has prompted calls for stricter regulations and enhanced enforcement measures. Experts emphasize the importance of tightening regulations across sectors, particularly in the online gaming and BFSI industries, to prevent further losses to the national exchequer.

As the government works to address this pressing issue, businesses and individuals are urged to comply with GST regulations and contribute their fair share to the nation's economic growth. The successful implementation of anti-evasion strategies and the cooperation of all stakeholders will be crucial in curbing this concerning trend and ensuring the effective collection of GST revenues.

Seen as a concerning development, tax evasion under the Goods and Services Tax (GST) regime has surged to a staggering Rs 2.01 lakh crore for the financial year 2023-24, nearly doubling from Rs 1.

Seen as a concerning development, tax evasion under the Goods and Services Tax (GST) regime has surged to a staggering Rs 2.01 lakh crore for the financial year 2023-24, nearly doubling from Rs 1.01 lakh crore in the previous fiscal year. This alarming increase, as reported by the Directorate General of GST Intelligence (DGGI), underscores the growing challenge in GST enforcement and the urgent need for stricter measures to curb this trend. The DGGI report has identified the online gaming and banking, financial services, and insurance (BFSI) sectors as the most susceptible to GST evasion. The online gaming sector alone accounted for a massive Rs 81,875 crore in evasion, while the BFSI sector saw Rs 18,961 crore in evasion. Among goods, the iron, copper, scrap, and alloys sectors faced Rs 16,806 crore in evasion, with pan masala, tobacco, cigarette, and beedi following at Rs 5,794 crore as detailed in a PTI report. Evasion capital: Mumbai takes the lead Mumbai has emerged as the highest zone for GST evasion detection, with a total of Rs 70,985 crore, followed by Delhi at Rs 18,313 crore, Pune at Rs 17,328 crore, Gurugram at Rs 15,502 crore, and Hyderabad at Rs 11,081 crore. This concentration of evasion in major metropolitan areas highlights the need for enhanced monitoring and enforcement measures in these regions. The breakdown of evasion types showed that non-payment of tax, including clandestine supply and undervaluation, constituted 46 per cent of cases, followed by fake input tax credit at 20 per cent and wrong or non-reversal of ITC or blocked credit at 19 per cent. These findings underscore the various methods employed by businesses and individuals to evade their tax obligations. A steady rise in GST evasion since the introduction Since the introduction of GST in 2017, detected evasion has been steadily increasing, with previous figures of Rs 7,879 crore in 2017-18, Rs 19,319 crore in 2018-19, Rs 21,739 crore in 2019-20, Rs 31,908 crore in 2020-21, and Rs 50,325 crore in 2021-22. This consistent upward trend highlights the need for continuous improvement in GST enforcement mechanisms and the implementation of robust anti-evasion strategies. Signals need for stricter regulations and enforcement The alarming rise in GST evasion, reaching over Rs 2.37 lakh crore across 20,576 cases in FY24, has prompted calls for stricter regulations and enhanced enforcement measures. Experts emphasize the importance of tightening regulations across sectors, particularly in the online gaming and BFSI industries, to prevent further losses to the national exchequer. As the government works to address this pressing issue, businesses and individuals are urged to comply with GST regulations and contribute their fair share to the nation's economic growth. The successful implementation of anti-evasion strategies and the cooperation of all stakeholders will be crucial in curbing this concerning trend and ensuring the effective collection of GST revenues.

Goods and Services Tax evasion surges to Rs 2.01 lakh crore in FY24

The Indian automotive sector has achieved a significant milestone, surpassing the INR 20 lakh crore mark in revenue for the fiscal year 2024, as announced by Vinod Aggarwal, President of the Society of Indian Automobile Manufacturers (SIAM), on Monday, September 9, 2024. This impressive figure translates to approximately USD 240 billion, highlighting the industry's substantial economic impact. The sector now accounts for 14-15 per cent of the total Goods and Services Tax (GST) collected in India, underscoring its pivotal role in the country's fiscal health.

&nbsp;

Aggarwal, speaking at the 64th annual session of the Automotive Component Manufacturers Association (ACMA), emphasized that the automotive industry's contribution extends beyond financial metrics. It plays a crucial role in generating both direct and indirect employment opportunities across the nation. Currently contributing around 6.8 per cent to India's Gross Domestic Product (GDP), Aggarwal expressed confidence that this percentage is set to increase in the coming years.

&nbsp;

The growth of the Indian automotive sector is not merely quantitative but also qualitative, with significant advancements in technology. On the global stage, India has solidified its position as a major player in the automotive market. It now ranks as the third-largest market for passenger vehicles, leads in two and three-wheeler sales, and holds the third position in the commercial vehicle segment. This progress aligns with India's vision of becoming a developed nation, or "Viksit Bharat," by 2047.

&nbsp;

Looking ahead, Aggarwal projects even faster growth for the automotive industry, anticipating it to be a key driver of India's economic development. In a strategic move to reduce import dependence, the industry has identified 50 critical components for local production. This initiative is part of a broader effort to enhance indigenous manufacturing capabilities.

&nbsp;

SIAM, in collaboration with ACMA, has set ambitious targets for increasing localization. The industry committed to reducing import content from 60 per cent to 20 per cent by 2025, using the 2019-20 levels as a baseline. This effort aims to decrease imports by INR 20,000 to INR 25,000 crore over five years. Aggarwal reported that the first phase of this import reduction plan has been successfully achieved, with a 5.8 per cent decrease in the first two years.

&nbsp;

The focus on local manufacturing extends to high-tech, critical components that have traditionally been imported. ACMA members are being encouraged to start producing these items in India, enabling vehicle Original Equipment Manufacturers (OEMs) to source them locally. Given that many of these components are electrical or electronic, there's a recognised need to develop specialized capabilities and capacities within India for these advanced items.

&nbsp;

The Indian automotive industry is not only excelling in conventional internal combustion engine technologies but is also making strides in alternative power trains. It has developed strong capabilities in multiple areas, including CNG, electric vehicles, and hybrids.

The industry is actively working on hydrogen and fuel cell-based technologies, demonstrating its commitment to innovation and sustainability.

&nbsp;

Aggarwal emphasised the industry's future focus on cleaner and safer vehicles, aligning with the country's growing aspirations. He also expressed gratitude to the Ministry of Heavy Industries for initiating the development of the third Automotive Mission Plan, which will cover the period from 2024 to 2047. This plan will outline the industry's growth trajectory in three distinct phases: from now to 2030, 2030 to 2037, and finally, 2037 to 2047.

&nbsp;

The Automotive Mission Plan is expected to serve as a crucial guiding document for the entire automobile and auto component industry. It will assist in planning investments and act as a reference for various government ministries and state governments in formulating policies aligned with the auto sector's growth and research needs.

&nbsp;

ACMA President Shradha Suri Marwah, also speaking at the session, highlighted some of the challenges facing the industry. These include addressing the skill gap and maintaining international quality standards. Marwah stressed the importance of collaboration with educational institutions and investment in skill development to overcome these challenges. She also emphasized the need for industry collaboration, particularly in light of the growing demand for electronic components and semiconductor chips.

The Indian automotive sector has achieved a significant milestone, surpassing the INR 20 lakh crore mark in revenue for the fiscal year 2024, as announced by Vinod Aggarwal, President of the Society of Indian Automobile Manufacturers (SIAM), on Monday, September 9, 2024.

The Indian automotive sector has achieved a significant milestone, surpassing the INR 20 lakh crore mark in revenue for the fiscal year 2024, as announced by Vinod Aggarwal, President of the Society of Indian Automobile Manufacturers (SIAM), on Monday, September 9, 2024. This impressive figure translates to approximately USD 240 billion, highlighting the industry's substantial economic impact. The sector now accounts for 14-15 per cent of the total Goods and Services Tax (GST) collected in India, underscoring its pivotal role in the country's fiscal health. Aggarwal, speaking at the 64th annual session of the Automotive Component Manufacturers Association (ACMA), emphasized that the automotive industry's contribution extends beyond financial metrics. It plays a crucial role in generating both direct and indirect employment opportunities across the nation. Currently contributing around 6.8 per cent to India's Gross Domestic Product (GDP), Aggarwal expressed confidence that this percentage is set to increase in the coming years. The growth of the Indian automotive sector is not merely quantitative but also qualitative, with significant advancements in technology. On the global stage, India has solidified its position as a major player in the automotive market. It now ranks as the third-largest market for passenger vehicles, leads in two and three-wheeler sales, and holds the third position in the commercial vehicle segment. This progress aligns with India's vision of becoming a developed nation, or "Viksit Bharat," by 2047. Looking ahead, Aggarwal projects even faster growth for the automotive industry, anticipating it to be a key driver of India's economic development. In a strategic move to reduce import dependence, the industry has identified 50 critical components for local production. This initiative is part of a broader effort to enhance indigenous manufacturing capabilities. SIAM, in collaboration with ACMA, has set ambitious targets for increasing localization. The industry committed to reducing import content from 60 per cent to 20 per cent by 2025, using the 2019-20 levels as a baseline. This effort aims to decrease imports by INR 20,000 to INR 25,000 crore over five years. Aggarwal reported that the first phase of this import reduction plan has been successfully achieved, with a 5.8 per cent decrease in the first two years. The focus on local manufacturing extends to high-tech, critical components that have traditionally been imported. ACMA members are being encouraged to start producing these items in India, enabling vehicle Original Equipment Manufacturers (OEMs) to source them locally. Given that many of these components are electrical or electronic, there's a recognised need to develop specialized capabilities and capacities within India for these advanced items. The Indian automotive industry is not only excelling in conventional internal combustion engine technologies but is also making strides in alternative power trains. It has developed strong capabilities in multiple areas, including CNG, electric vehicles, and hybrids. The industry is actively working on hydrogen and fuel cell-based technologies, demonstrating its commitment to innovation and sustainability. Aggarwal emphasised the industry's future focus on cleaner and safer vehicles, aligning with the country's growing aspirations. He also expressed gratitude to the Ministry of Heavy Industries for initiating the development of the third Automotive Mission Plan, which will cover the period from 2024 to 2047. This plan will outline the industry's growth trajectory in three distinct phases: from now to 2030, 2030 to 2037, and finally, 2037 to 2047. The Automotive Mission Plan is expected to serve as a crucial guiding document for the entire automobile and auto component industry. It will assist in planning investments and act as a reference for various government ministries and state governments in formulating policies aligned with the auto sector's growth and research needs. ACMA President Shradha Suri Marwah, also speaking at the session, highlighted some of the challenges facing the industry. These include addressing the skill gap and maintaining international quality standards. Marwah stressed the importance of collaboration with educational institutions and investment in skill development to overcome these challenges. She also emphasized the need for industry collaboration, particularly in light of the growing demand for electronic components and semiconductor chips.

Auto sector contributes nearly 15 per cent to total GST, says SIAM president

The 54th&nbsp;Goods and Services Tax&nbsp;Council meeting, chaired by Finance Minister Nirmala Sitharaman, concluded on Monday in New Delhi. Key&nbsp;agenda items included reducing Goods and Services Tax&nbsp;(GST) on health insurance premiums, taxing online payments above Rs 2,000, and addressing Infosys' tax notice of Rs 32,400 crore. 
 
This meeting was chaired by the Finance Minister of India. State finance ministers and senior officials were also in attendance as detailed in a report by The Economic Times. Further, the meeting concluded at the Sushma Swaraj Bhawan, New Delhi.

Several important decisions were taken up by the panel for consideration including the slashing of GST on health insurance premiums, and a proposal to tax online payments above Rs 2,000 among other issues. The primary goal of the meeting was to ensure that collection efficiency could be improved and the process could be further streamlined for citizens.

Below are some important takeaways

<o:p></o:p>

Formation of a new Group of Ministers (GoM) on medical insurance premium

The FM announced that the council has decided to form new Group of Ministers (GoM) on GST rate reduction on medical health insurance set up. It will be headed by the Deputy Chief Minister of Bihar but with newer members added for this limited purpose. It will submit its report by October-end. "The GST council which will meet in November will finalize based on this report which will come from the GoM," Sitharaman said.

<o:p></o:p>

GST on Online Gaming and Casinos

Nirmala Sitharaman, Finance Minister of India stated that following the announcement of GST on online gaming, there has been a 412 per cent jump in revenue, as per a status report submitted to the respective fitment committee.

GST on Cancer drugs has been reduced

Finance Minister Nirmala Sitharaman stated that the reduction in GST on cancer drugs from 12 per cent to 5 per cent is aimed at further reducing the overall cost of cancer treatment. This step is crucial as it is aimed to help citizens.

Group of Ministers on Cess

During the meeting, it was stated that primarily the total cess collection projected until March 2026 stands at Rs 8.66 lakh crore. Further, after settling the loan payments, a projected surplus of around Rs 40,000 crore is expected.

Select snacks are set to get cheaper

The GST council has decided to slash tax on selected snacks from 18 per cent to 12 per cent. This has been done to benefit the common citizens.

Govt Universities and research centers are exempted from paying GST

Universities and research centers established by central or state government laws, or those granted income tax exemptions, will now be exempt from paying Goods and Services Tax (GST) on research funding. The government also clarified that these institutions can receive research funds from both public and private sources without being liable for GST. This is a very important step that is aimed at boosting the research capabilities of the country.

FM confirmed that the position on compensation cess was thoroughly discussed in the meeting. She said that a Group of Ministers (GoM) will be formed to decide on the purpose of the cess and the way forward after March 2026, if the cess has to be collected after the said period as it cannot be called compensation cess. More deliberations will be done to find solutions to this particular issue.

On Integrated Goods and Services tax

In the meeting, key issues related to the Integrated Goods and Services Tax (IGST) balance were also discussed. The GST panel decided to set up a committee headed by the Additional Secretary of Revenue, who will address the negative IGST balance, focusing on retrieving excess IGST disbursed to states.

On rate rationalisation and renting of property

The Group of Ministers (GoM) presented their status report on rate rationalisation during the GST Council Meeting. FM Sitharaman stated that the GoM will convene on September 23 to discuss the same. Further, the GST panel has also decided to bring renting of commercial property by unregistered person to a registered person under Reverse Charge Mechanism (RCM), in order to prevent revenue leakage.

Expert views on the 54th GST council meeting

Shivam Mehta, Executive Partner, Lakshmikumaran and Sridharan, shared his insights on the 54th GST council meeting.

He stated, "The 54th GST council has maintained the pattern of addressing the recent issues and in turn attending to the representations of the industry. The recent exemptions proposed in the context of Government and Private grants received for research and development services seems to tackle the issue of taxability of grants received by research institutions. On the top of that, the decision to regularise the past demands will probably bring an end to the notices issued lately to institutions such as IIT-Delhi."

He further elaborated that, "The exemption given to foreign airlines with respect to import of services, without consideration from a related person or an establishment is a welcome move which will settle the ongoing disputes faced by foreign airlines. The exemption seems to have been carved out, specifically for the airlines industry, keeping in mind the status that airline industry enjoys in other countries. It is a customary practice to reimburse the expenses to the branches or related parties outside India and is not limited to the airline industry. Thus, the clarity on taxability in this domain is still awaited."

"While the insurance sector and countrymen (policy holders) at large, was eagerly waiting for some rate reduction in this council meeting, their hopes are not entirely lost since a Group of Ministers (GOM) has been constituted to look into the rate change. The cutoff date of October end shows the intent of the Government to cater to the demand of GST rate reduction/ exemption for health and life insurance premiums. The Government has also attempted to resolve the persistent request of the industry to provide for the mechanism to deal with ITC mismatch. It is a sound decision in light of the taxpayer’s struggling day and night with the ITC mismatch notices."

"Though the rate rationalization decision seems to have taken back seat as of now, the council has recommended various rate changes including rates on extruded or expanded products (namkeen), transportation of passengers by helicopters and other exemptions pertaining to services, ancillary to electricity distribution etc., which are clearly aimed at benefiting the end consumers."

Other crucial decisions

The GST panel decided to introduce Business-to-Customer (B2C) GST invoicing. This system for GST invoice management will take effect from October 1. It was also announced to surge GST on car seats from 18 per cent to 28 per cent in the meeting. Further, the panel also clarified that Roof Mounted Package Unit (RMPU) Air Conditioning Machines for Railways would be classified under HSN 8415 attracting a GST rate of 28 per cent. Further,&nbsp;helicopter services for religious purposes like Kedarnath, and Badrinath have been reduced to 5 per cent&nbsp;from 18 per cent, more clarity and details of this decision are awaited.

 
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The 54th Goods and Services Tax Council meeting, chaired by Finance Minister Nirmala Sitharaman, concluded on Monday in New Delhi. Key agenda items included reducing Goods and Services Tax (GST) on health insurance premiums, taxing online payments above Rs 2,000, and addressing Infosys' tax notice of Rs 32,400 crore.

The 54th Goods and Services Tax Council meeting, chaired by Finance Minister Nirmala Sitharaman, concluded on Monday in New Delhi. Key agenda items included reducing Goods and Services Tax (GST) on health insurance premiums, taxing online payments above Rs 2,000, and addressing Infosys' tax notice of Rs 32,400 crore. This meeting was chaired by the Finance Minister of India. State finance ministers and senior officials were also in attendance as detailed in a report by The Economic Times. Further, the meeting concluded at the Sushma Swaraj Bhawan, New Delhi. Several important decisions were taken up by the panel for consideration including the slashing of GST on health insurance premiums, and a proposal to tax online payments above Rs 2,000 among other issues. The primary goal of the meeting was to ensure that collection efficiency could be improved and the process could be further streamlined for citizens. Below are some important takeaways Formation of a new Group of Ministers (GoM) on medical insurance premium The FM announced that the council has decided to form new Group of Ministers (GoM) on GST rate reduction on medical health insurance set up. It will be headed by the Deputy Chief Minister of Bihar but with newer members added for this limited purpose. It will submit its report by October-end. "The GST council which will meet in November will finalize based on this report which will come from the GoM," Sitharaman said. GST on Online Gaming and Casinos Nirmala Sitharaman, Finance Minister of India stated that following the announcement of GST on online gaming, there has been a 412 per cent jump in revenue, as per a status report submitted to the respective fitment committee. GST on Cancer drugs has been reduced Finance Minister Nirmala Sitharaman stated that the reduction in GST on cancer drugs from 12 per cent to 5 per cent is aimed at further reducing the overall cost of cancer treatment. This step is crucial as it is aimed to help citizens. Group of Ministers on Cess During the meeting, it was stated that primarily the total cess collection projected until March 2026 stands at Rs 8.66 lakh crore. Further, after settling the loan payments, a projected surplus of around Rs 40,000 crore is expected. Select snacks are set to get cheaper The GST council has decided to slash tax on selected snacks from 18 per cent to 12 per cent. This has been done to benefit the common citizens. Govt Universities and research centers are exempted from paying GST Universities and research centers established by central or state government laws, or those granted income tax exemptions, will now be exempt from paying Goods and Services Tax (GST) on research funding. The government also clarified that these institutions can receive research funds from both public and private sources without being liable for GST. This is a very important step that is aimed at boosting the research capabilities of the country. FM confirmed that the position on compensation cess was thoroughly discussed in the meeting. She said that a Group of Ministers (GoM) will be formed to decide on the purpose of the cess and the way forward after March 2026, if the cess has to be collected after the said period as it cannot be called compensation cess. More deliberations will be done to find solutions to this particular issue. On Integrated Goods and Services tax In the meeting, key issues related to the Integrated Goods and Services Tax (IGST) balance were also discussed. The GST panel decided to set up a committee headed by the Additional Secretary of Revenue, who will address the negative IGST balance, focusing on retrieving excess IGST disbursed to states. On rate rationalisation and renting of property The Group of Ministers (GoM) presented their status report on rate rationalisation during the GST Council Meeting. FM Sitharaman stated that the GoM will convene on September 23 to discuss the same. Further, the GST panel has also decided to bring renting of commercial property by unregistered person to a registered person under Reverse Charge Mechanism (RCM), in order to prevent revenue leakage. Expert views on the 54th GST council meeting Shivam Mehta, Executive Partner, Lakshmikumaran and Sridharan, shared his insights on the 54th GST council meeting. He stated, "The 54th GST council has maintained the pattern of addressing the recent issues and in turn attending to the representations of the industry. The recent exemptions proposed in the context of Government and Private grants received for research and development services seems to tackle the issue of taxability of grants received by research institutions. On the top of that, the decision to regularise the past demands will probably bring an end to the notices issued lately to institutions such as IIT-Delhi." He further elaborated that, "The exemption given to foreign airlines with respect to import of services, without consideration from a related person or an establishment is a welcome move which will settle the ongoing disputes faced by foreign airlines. The exemption seems to have been carved out, specifically for the airlines industry, keeping in mind the status that airline industry enjoys in other countries. It is a customary practice to reimburse the expenses to the branches or related parties outside India and is not limited to the airline industry. Thus, the clarity on taxability in this domain is still awaited." "While the insurance sector and countrymen (policy holders) at large, was eagerly waiting for some rate reduction in this council meeting, their hopes are not entirely lost since a Group of Ministers (GOM) has been constituted to look into the rate change. The cutoff date of October end shows the intent of the Government to cater to the demand of GST rate reduction/ exemption for health and life insurance premiums. The Government has also attempted to resolve the persistent request of the industry to provide for the mechanism to deal with ITC mismatch. It is a sound decision in light of the taxpayer’s struggling day and night with the ITC mismatch notices." "Though the rate rationalization decision seems to have taken back seat as of now, the council has recommended various rate changes including rates on extruded or expanded products (namkeen), transportation of passengers by helicopters and other exemptions pertaining to services, ancillary to electricity distribution etc., which are clearly aimed at benefiting the end consumers." Other crucial decisions The GST panel decided to introduce Business-to-Customer (B2C) GST invoicing. This system for GST invoice management will take effect from October 1. It was also announced to surge GST on car seats from 18 per cent to 28 per cent in the meeting. Further, the panel also clarified that Roof Mounted Package Unit (RMPU) Air Conditioning Machines for Railways would be classified under HSN 8415 attracting a GST rate of 28 per cent. Further, helicopter services for religious purposes like Kedarnath, and Badrinath have been reduced to 5 per cent from 18 per cent, more clarity and details of this decision are awaited.

GST council meeting key takeaways: Council reduces rate on cancer drugs to 5% from 12% and more

The Goods and Services Tax (GST) Council is gearing up for a crucial meeting where it will deliberate on the taxation of insurance premiums and online gaming, two sectors that have been under scrutiny for their tax implications. This discussion is expected to have far-reaching consequences for both the industries i.e., insurance and gaming, thus affecting consumers, businesses, and the overall economic landscape as detailed in a report by the Press Trust of India.

The Taxation of Insurance Premiums and Online Gaming<o:p></o:p>

Insurance premiums have long been a subject of debate when it comes to GST. Currently, the GST rate on health insurance is 18 per cent, but there is a growing consensus that a uniform lower rate could simplify the tax structure and make it more affordable. The council will consider whether to impose a uniform GST rate on all types of insurance premiums, which could include life insurance, health insurance, and general insurance. More details on this particular issue will emerge as the meeting takes place.

The deliberations will also take place with regards to a GST cut on life insurance premiums. Notably, the Centre and states mopped up Rs 8,262.94 crore from GST on health insurance premiums and Rs 1,484.36 crore from GST on health reinsurance premiums, the PTI report added.

Implications of change in the Goods and Services Tax

For consumers, a change in the GST rate on insurance premiums could mean an increase or decrease in their premiums. For instance, if the GST rate is increased, consumers might see a rise in their insurance costs, which could be a deterrent for those already hesitant to invest in insurance products. On the other hand, a reduction in the GST rate could make insurance more affordable, potentially boosting the number of policyholders.

Further, online gaming has emerged as a significant sector in recent years, with millions of users engaging in various forms of digital entertainment. However, the taxation of online gaming has been a contentious issue. Since October last year, the government has imposed 28 per cent GST on entry-level bets placed on online gaming platforms and casinos. In its August 2023 meet, the GST Council recommended the tax levy, which was subsequently amended into the Central GST law to make the provision clear, the report added.

The GST Council will hence discuss whether to impose a GST on the gross gaming revenue or the net gaming revenue. This distinction is crucial because it affects how much tax operators will have to pay.

If the council decides to tax the gross gaming revenue, it could lead to higher tax liabilities for online gaming operators. This might result in higher costs for players, as operators could pass on the increased tax burden. Conversely, taxing the net gaming revenue could be more favorable for operators, potentially leading to more competitive pricing and better user experiences.

Impact on the industry and consumers<o:p></o:p>

The decisions made by the GST Council will have profound implications for both the insurance and online gaming industries. For insurance companies, a uniform GST rate could streamline their operations and reduce compliance costs. However, it could also impact their profitability if the rate is set too high.

For online gaming operators, the tax structure will determine their operational costs and profitability. A favorable tax regime could encourage more investment in the sector, leading to better services and more job opportunities. However, an unfavorable regime could stifle growth and drive operators to seek more tax-friendly jurisdictions.

Further, consumers will be closely watching the outcomes of this meeting, as it will directly affect their wallets. For insurance policyholders, any change in the GST rate will impact their premiums. For online gamers, the tax structure could influence the cost of playing and the variety of games available.

In addition to the financial implications, consumers are also concerned about the fairness and transparency of the tax system. A clear and consistent tax policy can build trust and encourage more people to engage with these services.

Therefore, it is to be noted that the upcoming GST Council meeting is a critical juncture for the insurance and online gaming sectors. The decisions made will shape the future of these industries and have a direct impact on consumers. As the council deliberates, it must balance the need for revenue generation with the need to promote growth and consumer welfare. The outcome will be closely watched by stakeholders across the board, as it sets the stage for the future of taxation in these dynamic sectors.

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The Goods and Services Tax (GST) Council is gearing up for a crucial meeting where it will deliberate on the taxation of insurance premiums and online gaming, two sectors that have been under scrutiny for their tax implications.

The Goods and Services Tax (GST) Council is gearing up for a crucial meeting where it will deliberate on the taxation of insurance premiums and online gaming, two sectors that have been under scrutiny for their tax implications. This discussion is expected to have far-reaching consequences for both the industries i.e., insurance and gaming, thus affecting consumers, businesses, and the overall economic landscape as detailed in a report by the Press Trust of India. The Taxation of Insurance Premiums and Online Gaming Insurance premiums have long been a subject of debate when it comes to GST. Currently, the GST rate on health insurance is 18 per cent, but there is a growing consensus that a uniform lower rate could simplify the tax structure and make it more affordable. The council will consider whether to impose a uniform GST rate on all types of insurance premiums, which could include life insurance, health insurance, and general insurance. More details on this particular issue will emerge as the meeting takes place. The deliberations will also take place with regards to a GST cut on life insurance premiums. Notably, the Centre and states mopped up Rs 8,262.94 crore from GST on health insurance premiums and Rs 1,484.36 crore from GST on health reinsurance premiums, the PTI report added. Implications of change in the Goods and Services Tax For consumers, a change in the GST rate on insurance premiums could mean an increase or decrease in their premiums. For instance, if the GST rate is increased, consumers might see a rise in their insurance costs, which could be a deterrent for those already hesitant to invest in insurance products. On the other hand, a reduction in the GST rate could make insurance more affordable, potentially boosting the number of policyholders. Further, online gaming has emerged as a significant sector in recent years, with millions of users engaging in various forms of digital entertainment. However, the taxation of online gaming has been a contentious issue. Since October last year, the government has imposed 28 per cent GST on entry-level bets placed on online gaming platforms and casinos. In its August 2023 meet, the GST Council recommended the tax levy, which was subsequently amended into the Central GST law to make the provision clear, the report added. The GST Council will hence discuss whether to impose a GST on the gross gaming revenue or the net gaming revenue. This distinction is crucial because it affects how much tax operators will have to pay. If the council decides to tax the gross gaming revenue, it could lead to higher tax liabilities for online gaming operators. This might result in higher costs for players, as operators could pass on the increased tax burden. Conversely, taxing the net gaming revenue could be more favorable for operators, potentially leading to more competitive pricing and better user experiences. Impact on the industry and consumers The decisions made by the GST Council will have profound implications for both the insurance and online gaming industries. For insurance companies, a uniform GST rate could streamline their operations and reduce compliance costs. However, it could also impact their profitability if the rate is set too high. For online gaming operators, the tax structure will determine their operational costs and profitability. A favorable tax regime could encourage more investment in the sector, leading to better services and more job opportunities. However, an unfavorable regime could stifle growth and drive operators to seek more tax-friendly jurisdictions. Further, consumers will be closely watching the outcomes of this meeting, as it will directly affect their wallets. For insurance policyholders, any change in the GST rate will impact their premiums. For online gamers, the tax structure could influence the cost of playing and the variety of games available. In addition to the financial implications, consumers are also concerned about the fairness and transparency of the tax system. A clear and consistent tax policy can build trust and encourage more people to engage with these services. Therefore, it is to be noted that the upcoming GST Council meeting is a critical juncture for the insurance and online gaming sectors. The decisions made will shape the future of these industries and have a direct impact on consumers. As the council deliberates, it must balance the need for revenue generation with the need to promote growth and consumer welfare. The outcome will be closely watched by stakeholders across the board, as it sets the stage for the future of taxation in these dynamic sectors.

GST council to deliberate on taxation of insurance premium and online gaming

The central government on Monday (Sep 9) postponed the announcement regarding a potential reduction in the&nbsp;Goods and Services Tax (GST) on health insurance premiums. Chaired by Union Finance Minister Nirmala Sitharaman, the 54th GST Council meeting instead formed a group of ministers (GoM) to examine the issue.&nbsp;

The&nbsp;GoM will submit its report on&nbsp;insurance-related matters for senior citizens, life insurance, term insurance and group insurance by October end. Meanwhile, the council is expected to discuss removing GST or reducing it in the November meeting.&nbsp;&nbsp;&nbsp;

On Monday, the Fitment Committee, comprising the centre and state tax officials presented a report giving data and&nbsp;and analysis and implications of GST reduction on life, health and reinsurance premiums.

West Bengal Finance Minister Chandrima Bhattacharya stated that the majority of ministers were in support of reducing GST on insurance premiums.&nbsp;

"The issue of GST on health insurance was raised by me. I said that the full exemption should be given. The Chief Minister of Goa supported me. Many of the ministers were of the view that it has to be reduced," said Bhattacharya after the meeting.&nbsp;

"They were agreeable to reduce but from 18 per cent to 5 per cent. Now, whether it will be exempted or it will be reduced to 5 per cent, GoM has been constituted, which will give its report by October last and then it will be decided in the next meeting."

In the lead-up to Monday's meeting, reports emerged that the government was planning to do away with the GST on health insurance premiums that had been pinching the common man.&nbsp;At present, premiums for both health and life insurance policies are subject to an 18 per cent&nbsp;GST.

<a href="https://www.wionews.com/videos/indias-health-insurance-big-growth-bigger-gaps-755162">Watch |&nbsp;India’s health insurance: Big growth, bigger gaps</a>

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<h2>Gadkari had urged&nbsp;Cabinet colleague in July</h2>

A leaked letter by&nbsp;Union Minister for Road Transport &amp; Highways Nitin Gadkari, written to Sitharaman, showed that the senior minister was also in favour of doing away with GST on insurance premiums.&nbsp;

"Levying GST on life insurance premium amounts to levying tax on the uncertainties of life," Gadkari said in his letter to Sitharaman, dated July 31.

<a href="https://www.wionews.com/business-economy/nirmala-sitharaman-gets-good-news-for-hostel-goers-railway-services-top-points-of-gst-council-meet-734230">Also read |&nbsp;Nirmala Sitharaman gets good news for hostel goers, railway services: Top points of June GST council meet</a>

"The Union feels that the person who covers the risk of life's uncertainties to give some protection to the family should not be levied tax on the premium to purchase cover against this risk."

<h2>What else was announced?</h2>

Sitharaman announced a reduction in GST rate on&nbsp;specified cancer drugs from 12 per cent to 5 per cent.

“You would recall that we had slashed customs duties on them and now the GST rate is being reduced from 12 per cent to 5 per cent&nbsp;to further reduce cancer treatment costs,” she said.

Additionally, funds&nbsp;given for research to State-affiliated universities, those that have come about under State or Central laws, or those that have obtained Income Tax exemption, can receive research funds both from the public&nbsp;and private sectors and will be exempt from paying GST.&nbsp;

(With inputs from agencies)

The central government on Monday (Sep 9) postponed the announcement regarding a potential reduction in the Goods and Services Tax (GST) on health insurance premiums.

The central government on Monday (Sep 9) postponed the announcement regarding a potential reduction in the Goods and Services Tax (GST) on health insurance premiums. Chaired by Union Finance Minister Nirmala Sitharaman, the 54th GST Council meeting instead formed a group of ministers (GoM) to examine the issue. The GoM will submit its report on insurance-related matters for senior citizens, life insurance, term insurance and group insurance by October end. Meanwhile, the council is expected to discuss removing GST or reducing it in the November meeting. On Monday, the Fitment Committee, comprising the centre and state tax officials presented a report giving data and and analysis and implications of GST reduction on life, health and reinsurance premiums. West Bengal Finance Minister Chandrima Bhattacharya stated that the majority of ministers were in support of reducing GST on insurance premiums. "The issue of GST on health insurance was raised by me. I said that the full exemption should be given. The Chief Minister of Goa supported me. Many of the ministers were of the view that it has to be reduced," said Bhattacharya after the meeting. "They were agreeable to reduce but from 18 per cent to 5 per cent. Now, whether it will be exempted or it will be reduced to 5 per cent, GoM has been constituted, which will give its report by October last and then it will be decided in the next meeting." In the lead-up to Monday's meeting, reports emerged that the government was planning to do away with the GST on health insurance premiums that had been pinching the common man. At present, premiums for both health and life insurance policies are subject to an 18 per cent GST. Watch | India’s health insurance: Big growth, bigger gaps × Gadkari had urged Cabinet colleague in July A leaked letter by Union Minister for Road Transport & Highways Nitin Gadkari, written to Sitharaman, showed that the senior minister was also in favour of doing away with GST on insurance premiums. "Levying GST on life insurance premium amounts to levying tax on the uncertainties of life," Gadkari said in his letter to Sitharaman, dated July 31. Also read | Nirmala Sitharaman gets good news for hostel goers, railway services: Top points of June GST council meet "The Union feels that the person who covers the risk of life's uncertainties to give some protection to the family should not be levied tax on the premium to purchase cover against this risk." What else was announced? Sitharaman announced a reduction in GST rate on specified cancer drugs from 12 per cent to 5 per cent. “You would recall that we had slashed customs duties on them and now the GST rate is being reduced from 12 per cent to 5 per cent to further reduce cancer treatment costs,” she said. Additionally, funds given for research to State-affiliated universities, those that have come about under State or Central laws, or those that have obtained Income Tax exemption, can receive research funds both from the public and private sectors and will be exempt from paying GST. (With inputs from agencies)

India: GST on health insurance premiums to be reduced? Centre moves one step closer

Malaysia is looking at reintroducing a broad-based consumption tax, possibly, the goods and services tax as an alternative to cut down on popular gasoline subsidies. This move aims to strengthen the country's finances.

Malaysia eyes GST to boost finances

A ₹54 crore ($540mn) GST fraud has been unearthed in the national capital. The scam involved a rogue tax officer, three lawyers, and several accomplices who defrauded the GST Department. The Anti-Corruption Bureau of the Delhi Government exposed the racket.

A GST officer along with three lawyers, two transporters and the owner of a "company" were part of a plan involving 500 fake companies and fake invoices worth ₹ 718 crores ($7180 mn) to claim GST refunds worth ₹ 54 crores ($540mn).&nbsp;

Also read:&nbsp;<a href="https://www.wionews.com/india-news/hindenburg-report-reveals-5-billion-mutual-fund-money-invested-in-10-adani-group-companies-749467">Hindenburg report reveals $5 billion mutual fund money invested in 10 Adani Group companies</a>

The 500 companies were shell companies involved in a fraudulent scheme to obtain GST refunds by pretending to engage in the import and export of medical products.

The GST Officer (GSTO) Babita Sharma, came up with a plan with 96 fake firms and approved over 400 refunds worth ₹ 35.51 crore ($355mn) between 2021 and 2022.&nbsp;

Initially, only ₹7 lakh (8,338.20 USD) worth of refunds were approved in the first year, but the remaining amount was sanctioned subsequently.

Interestingly, the refunds were approved by the GSTO after filing the applications and approval was given within three days.

In 2021, Sharma was transferred to Ward 22 of the GST office and surprisingly, within a few days, over 50 firms applied for migration from Ward 6 to Ward 22, and were Okayed within a short period.

A surge in migration requests raised red flags, leading the GST Vigilance Department to inspect the involved firms. This investigation exposed a ₹54 crore GST scam orchestrated from within the department.

Notably, the fake firms generated invoices worth ₹ 718 crore, i.e. false acquisitions were made and business was only on paper, the probe found.&nbsp;

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/wholl-watch-the-watchdog-did-sebi-chief-madhabi-buch-fail-to-disclose-adani-links-recuse-from-probes-749348">Who'll watch the watchdog? Did SEBI chief Madhabi Buch fail to disclose Adani links, recuse from probes?</a>

Refunds were issued without verification of invoices and Input Tax Credit (ITC) by the GSTO.

Of the 53 firms that migrated to Ward 22 after Babita's transfer, 48 were given a GST refund of ₹ 12.32 crore (123.2 mn).&nbsp;

The investigation uncovered that the fraudulent GST refunds were channelled into the bank accounts of three lawyers, Rajat, Mukesh, and Narendra Saini, as well as their relatives.

The trio ran 23 firms from an email ID and mobile numbers. The 23 firms handled by the lawyers generated fake invoices worth ₹ 173 crore (1730 mn).

(With inputs from agencies)

A ₹54 crore ($540mn) GST fraud has been unearthed in the national capital. The scam involved a rogue tax officer, three lawyers, and several accomplices who defrauded the GST Department.

A ₹54 crore ($540mn) GST fraud has been unearthed in the national capital. The scam involved a rogue tax officer, three lawyers, and several accomplices who defrauded the GST Department. The Anti-Corruption Bureau of the Delhi Government exposed the racket. A GST officer along with three lawyers, two transporters and the owner of a "company" were part of a plan involving 500 fake companies and fake invoices worth ₹ 718 crores ($7180 mn) to claim GST refunds worth ₹ 54 crores ($540mn). Also read: Hindenburg report reveals $5 billion mutual fund money invested in 10 Adani Group companies The 500 companies were shell companies involved in a fraudulent scheme to obtain GST refunds by pretending to engage in the import and export of medical products. The GST Officer (GSTO) Babita Sharma, came up with a plan with 96 fake firms and approved over 400 refunds worth ₹ 35.51 crore ($355mn) between 2021 and 2022. Initially, only ₹7 lakh (8,338.20 USD) worth of refunds were approved in the first year, but the remaining amount was sanctioned subsequently. Interestingly, the refunds were approved by the GSTO after filing the applications and approval was given within three days. In 2021, Sharma was transferred to Ward 22 of the GST office and surprisingly, within a few days, over 50 firms applied for migration from Ward 6 to Ward 22, and were Okayed within a short period. A surge in migration requests raised red flags, leading the GST Vigilance Department to inspect the involved firms. This investigation exposed a ₹54 crore GST scam orchestrated from within the department. Notably, the fake firms generated invoices worth ₹ 718 crore, i.e. false acquisitions were made and business was only on paper, the probe found. Also read: Who'll watch the watchdog? Did SEBI chief Madhabi Buch fail to disclose Adani links, recuse from probes? Refunds were issued without verification of invoices and Input Tax Credit (ITC) by the GSTO. Of the 53 firms that migrated to Ward 22 after Babita's transfer, 48 were given a GST refund of ₹ 12.32 crore (123.2 mn). The investigation uncovered that the fraudulent GST refunds were channelled into the bank accounts of three lawyers, Rajat, Mukesh, and Narendra Saini, as well as their relatives. The trio ran 23 firms from an email ID and mobile numbers. The 23 firms handled by the lawyers generated fake invoices worth ₹ 173 crore (1730 mn). (With inputs from agencies)

GST heist: Tax officer, lawyers defraud Delhi govt of $540mn

Budget 2024-25: Ahead of presenting the national budget in the parliament, Union Finance Minister Nirmala Sitharaman chaired pre-budget consultations with the finance ministers of states and union territories to build consensus on matters of contention. The meeting was followed by the 53rd meeting of the Goods and Services Tax (GST) on Saturday (June 22).

The GST council exempted services by way of hostel accommodation outside educational institutions up to ₹20,000 ($239) per person per month. But the student must have stayed in the hostel for a continuous period of 90 days.&nbsp;

<h2>53rd GST council meet: Top points</h2>

1. Railway tickets and payments for waiting room and cloak room have been exempted from GST.&nbsp;

2. No GST will be levied on intra-railway services as well as the services provided like battery-operated vehicles.

3. "There is going to be a rolling out of biometric-based Aadhaar authentication on an all-India basis. This will help us to combat fraudulent input tax credit claims made through fake invoices in the cases," the finance minister announced at the briefing after the 53rd GST Council meet.

4. "In order to help small taxpayers, the Council recommended extending the time limit to furnish the detail and the returns in the form GSTR 4 from 30th April, the council has recommended that it be extended to 30th June. This will apply for returns for the Financial Year 2024- 25 onwards," the minister added.&nbsp;

Also watch |&nbsp;Online gaming: Navigating the GST burden | The India Story

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5. "Today, the 53rd GST Council Meeting has taken a lot of decisions on trade facilitation, easing compliance burden and giving relief to tax taxpayers in terms of compliance easing out. So this will benefit the traders, MSMEs and taxpayers,"&nbsp;Sitharaman said at a briefing after the 53rd GST Council meeting.&nbsp;

6. "The time limit to avail input tax credit in respect of any invoice or debit note under section 16(4) of the CGST Act filed up to the 30-11-2021 for the financial years 17-18, 18-19, 19-20 and 20-21 may be deemed to be 2011 to 2021. So for the same requisite amendment retrospectively with effect from 1 July 2017, the council has made a recommendation," said the finance minister.

7. Sitharaman added, "The Council has also recommended that the maximum amount for pre-deposit for filing appeal before the appellate authority shall be reduced from ₹25 Crores CGST and 25 Crores SGST to ₹20 Crore CGST and ₹20 SGST and that is the maximum amount of pre-deposit for filing appeals before the appellate authority."

Budget 2024-25: Ahead of presenting the national budget in the parliament, Union Finance Minister Nirmala Sitharaman chaired pre-budget consultations with the finance ministers of states and union territories to build consensus on matters of contention.

Budget 2024-25: Ahead of presenting the national budget in the parliament, Union Finance Minister Nirmala Sitharaman chaired pre-budget consultations with the finance ministers of states and union territories to build consensus on matters of contention. The meeting was followed by the 53rd meeting of the Goods and Services Tax (GST) on Saturday (June 22). The GST council exempted services by way of hostel accommodation outside educational institutions up to ₹20,000 ($239) per person per month. But the student must have stayed in the hostel for a continuous period of 90 days. 53rd GST council meet: Top points 1. Railway tickets and payments for waiting room and cloak room have been exempted from GST. 2. No GST will be levied on intra-railway services as well as the services provided like battery-operated vehicles. 3. "There is going to be a rolling out of biometric-based Aadhaar authentication on an all-India basis. This will help us to combat fraudulent input tax credit claims made through fake invoices in the cases," the finance minister announced at the briefing after the 53rd GST Council meet. 4. "In order to help small taxpayers, the Council recommended extending the time limit to furnish the detail and the returns in the form GSTR 4 from 30th April, the council has recommended that it be extended to 30th June. This will apply for returns for the Financial Year 2024- 25 onwards," the minister added. Also watch | Online gaming: Navigating the GST burden | The India Story × 5. "Today, the 53rd GST Council Meeting has taken a lot of decisions on trade facilitation, easing compliance burden and giving relief to tax taxpayers in terms of compliance easing out. So this will benefit the traders, MSMEs and taxpayers," Sitharaman said at a briefing after the 53rd GST Council meeting. 6. "The time limit to avail input tax credit in respect of any invoice or debit note under section 16(4) of the CGST Act filed up to the 30-11-2021 for the financial years 17-18, 18-19, 19-20 and 20-21 may be deemed to be 2011 to 2021. So for the same requisite amendment retrospectively with effect from 1 July 2017, the council has made a recommendation," said the finance minister. 7. Sitharaman added, "The Council has also recommended that the maximum amount for pre-deposit for filing appeal before the appellate authority shall be reduced from ₹25 Crores CGST and 25 Crores SGST to ₹20 Crore CGST and ₹20 SGST and that is the maximum amount of pre-deposit for filing appeals before the appellate authority."

Nirmala Sitharaman gets good news for hostel goers, railway services: Top points of GST council meet

India collected a record 2.10 trillion rupees ($25.15 billion) as gross goods and services tax (GST) in April, a rise of 12.4 per cent from the same period last year, the government said in a statement on Wednesday.

The government had collected 1.87 trillion rupees as GST in the same period last year.

"GST collections breach landmark milestone of 2 trillion rupees," Finance Minister Nirmala Sitharaman posted on social media platform X, formerly known as Twitter.

After refunds, the government's net GST mop-up rose 17.1 per cent year-on-year to 1.92 trillion rupees, the statement said.

The collection in April is usually higher as taxpayers clear their dues when India's financial year ends in March.

The unprecedented surge in GST collections is a positive indicator of economic activity and compliance levels, said Rajat Mohan, executive director at accounting firm MOORE Singhi.

"A significant portion of this rise could be attributed to the accumulation of year-end tax dues, which typically see a spike as businesses and individuals rush to meet fiscal deadlines," Mohan added.

India collected a record 2.10 trillion rupees ($25.15 billion) as gross goods and services tax (GST) in April, a rise of 12.4 per cent from the same period last year, the government said in a statement on Wednesday.

India collected a record 2.10 trillion rupees ($25.15 billion) as gross goods and services tax (GST) in April, a rise of 12.4 per cent from the same period last year, the government said in a statement on Wednesday. The government had collected 1.87 trillion rupees as GST in the same period last year. "GST collections breach landmark milestone of 2 trillion rupees," Finance Minister Nirmala Sitharaman posted on social media platform X, formerly known as Twitter. After refunds, the government's net GST mop-up rose 17.1 per cent year-on-year to 1.92 trillion rupees, the statement said. The collection in April is usually higher as taxpayers clear their dues when India's financial year ends in March. The unprecedented surge in GST collections is a positive indicator of economic activity and compliance levels, said Rajat Mohan, executive director at accounting firm MOORE Singhi. "A significant portion of this rise could be attributed to the accumulation of year-end tax dues, which typically see a spike as businesses and individuals rush to meet fiscal deadlines," Mohan added.

India collects record 2.10 trillion rupees as goods and services tax in April

India's gross Goods and Services Tax (GST) collection for March witnessed a strong boom of 11.5 per cent year-on-year (YoY), reaching ₹1.78 trillion ($21.35 billion), in line with a government declaration released on Monday. <o:p></o:p>

This surge reflects the country's strong financial performance despite global uncertainties, as reported by Reuters.<o:p></o:p>

The government had accumulated ₹1.60 trillion in GST last year. The amount collected for March is the second-highest since the origin of the GST regime in 2017. <o:p></o:p>

Notably, in April 2023, the GST collection&nbsp;peaked at ₹1.87 trillion.<o:p></o:p>

The average month-to-month GST revenue&nbsp;for the financial year (FY) 2023-24, which ended&nbsp;on March 31, stood at ₹1.68 trillion, marking&nbsp;a considerable increase from the ₹1.5 trillion recorded in the preceding financial year.<o:p></o:p>

The cumulative gross GST series for the FY2023-24 amounted to about ₹20.1 trillion, indicating a 12 per cent boom compared to the previous financial year.<o:p></o:p>

Reuters cited Abhishek Jain, an associate at KPMG, who attributed the increase in tax revenue to India's strong economic growth. <o:p></o:p>

He claimed that the&nbsp;economy expanded by 8.4 per cent year over year in the October–December quarter, surpassing the 7.6 per cent growth observed in the corresponding quarter.<o:p></o:p>

Additionally, India's Finance Minister, Nirmala Sitharaman, on Saturday said that the country's economy was predicted to expand at the same annual rate for the FY2023-24 and that it was on course to grow by 8 per cent or more in the quarter that ended on March 31.

(With inputs from Reuters)

India's gross Goods and Services Tax (GST) collection for March witnessed a strong boom of 11.5 per cent year-on-year (YoY), reaching ₹1.78 trillion ($21.35 billion), in line with a government declaration released on Monday.

India's gross Goods and Services Tax (GST) collection for March witnessed a strong boom of 11.5 per cent year-on-year (YoY), reaching ₹1.78 trillion ($21.35 billion), in line with a government declaration released on Monday. This surge reflects the country's strong financial performance despite global uncertainties, as reported by Reuters. The government had accumulated ₹1.60 trillion in GST last year. The amount collected for March is the second-highest since the origin of the GST regime in 2017. Notably, in April 2023, the GST collection peaked at ₹1.87 trillion. The average month-to-month GST revenue for the financial year (FY) 2023-24, which ended on March 31, stood at ₹1.68 trillion, marking a considerable increase from the ₹1.5 trillion recorded in the preceding financial year. The cumulative gross GST series for the FY2023-24 amounted to about ₹20.1 trillion, indicating a 12 per cent boom compared to the previous financial year. Reuters cited Abhishek Jain, an associate at KPMG, who attributed the increase in tax revenue to India's strong economic growth. He claimed that the economy expanded by 8.4 per cent year over year in the October–December quarter, surpassing the 7.6 per cent growth observed in the corresponding quarter. Additionally, India's Finance Minister, Nirmala Sitharaman, on Saturday said that the country's economy was predicted to expand at the same annual rate for the FY2023-24 and that it was on course to grow by 8 per cent or more in the quarter that ended on March 31. (With inputs from Reuters)

India's GST collection surges 11.5 pc YoY to $21.35 bn in March

Indian expects to collect up to 140 billion rupees ($1.7 billion) in goods and services tax (GST) next financial year by taxing online gambling companies, Revenue Secretary Sanjay Malhotra told Reuters on Saturday.

2023: India imposes 28% GST on online gaming

A promising forecast for the gaming industry as it gears up for a significant rebound in 2024. Research firm Newzoo reports a projected 2.8% surge, & a market value of $189.3 billion. This resurgence follows a modest 0.6% growth in the previous year, marking the end of a post-COVID decline that led to layoffs in the industry.

Consoles lead gaming resurgence

There is an old story about Mullah Nasruddin, the main character in the Muslim world's folktales full of humour and wisdom, that comes to mind as we hear about Zomato and Swiggy being <a href="https://www.cnbctv18.com/business/companies/zomato-swiggy-receives-gst-demand-notice-dggi-exclusive-18386591.htm">chased</a>&nbsp;by the&nbsp;taxman.&nbsp;

The two food delivery companies are said to owe the government unpaid goods and services tax (GST) that between them is estimated by authorities at Rs 750 crore. That's not too far from $100 million.

Also read |&nbsp;<a href="https://www.msn.com/en-in/money/news/zomato-swiggy-hit-with-gst-demand-notice-face-tax-troubles-report/ar-AA1kokhu?ocid=finance-verthp-feeds">Zomato, Swiggy hit with GST demand notice, face tax troubles</a>

The Nasruddin tale, to cut the long story short, is about his wife making up an explanation to account for a good portion of three kilos of meat that get consumed by her visiting neighbours, leaving the Mullah just bits covered with rice.

To escape his admonition, she tells him the cat ate the meat. Nasruddin weighs the cat which also measures three kilos. “If I am weighing the cat, then where is the meat?” asks Nasruddin. “And if I am weighing the meat, then where is the cat?”

Moral of the story for Smart Alec companies: Make up your mind on which part of the business value chain you are and don't try to be too clever by half in dealing with the taxman. Time and again, it has been observed that tax authorities are known to plug loopholes even when they are legal. When it is an open-and-shut case, it gets trickier for companies.

Also watch |&nbsp;Gravitas: Swiggy and Zomato facing tax troubles

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If Zomato and Swiggy are indeed delivery companies that charge delivery fees, they have to be seen as service companies that are bound to pay service tax on the charges. But the problem is that food is a complex business. Raw materials do not cost as much in making a cooked item as other incidental costs involved in packaging, managing restaurant premises and maintaining a labour force.

Being venture capital-funded companies usually means that the likes of Zomato and Swiggy cannot think of themselves as just glorified courier companies. So they get into partnerships and promotional work in complex business models that take their work into a fuzzy zone.

Trying to convert some of that fuzziness into profit-sharing opportunities while also being a delivery company puts them in the position of Mullah Nasruddin's wife Fatima. You cannot eat the meat and say the cat ate it without knowing how the balance works. As it turns out, tax authorities may be slow to understand it all, but when they come down on an industry, they do so pretty hard.

As a perceptive research paper <a href="https://eauditoroffice.com/blog/business-model-zomato-vs-swiggy">said</a>: "Swiggy’s revenue is based on three major streams- Advertising, Commission, and delivery fees whereas the three key pillars that drive Zomato’s revenue are Food Delivery, Dining Out, and Hyperpure (formerly sustainability)."

To some extent, food delivery companies that run websites that have content and logistical muscle can add the apples of commission revenues with the oranges of service fees. However, in a cut-throat business where competition is intense but profit margins are high, there is a roller-coaster approach to promotions, technology, and partnerships. Zomato's early honeymoon with big restaurants as a dine-in demand provider ran into hiccups when high-end restaurants found the platform not as palatable as their gourmet food.

Perhaps it is time for venture capitalists and entrepreneurs to realise that complicated business models can boomerang while simple business models may not be alluring to investors. You have to strike a balance somewhere.

How about realistic valuations? And how about realising that a software platform with a bunch of delivery staff is what you really are.&nbsp;Keeping it simple is not a bad idea, though that might take some sheen of the high-tech image.

(Disclaimer: The views of the writer do not represent the views of WION or ZMCL. Nor does WION or ZMCL endorse the views of the writer.)

There is an old story about Mullah Nasruddin, the main character in the Muslim world's folktales full of humour and wisdom, that comes to mind as we hear about Zomato and Swiggy being chased by the taxman.

There is an old story about Mullah Nasruddin, the main character in the Muslim world's folktales full of humour and wisdom, that comes to mind as we hear about Zomato and Swiggy being chased by the taxman. The two food delivery companies are said to owe the government unpaid goods and services tax (GST) that between them is estimated by authorities at Rs 750 crore. That's not too far from $100 million. Also read | Zomato, Swiggy hit with GST demand notice, face tax troubles The Nasruddin tale, to cut the long story short, is about his wife making up an explanation to account for a good portion of three kilos of meat that get consumed by her visiting neighbours, leaving the Mullah just bits covered with rice. To escape his admonition, she tells him the cat ate the meat. Nasruddin weighs the cat which also measures three kilos. “If I am weighing the cat, then where is the meat?” asks Nasruddin. “And if I am weighing the meat, then where is the cat?” Moral of the story for Smart Alec companies: Make up your mind on which part of the business value chain you are and don't try to be too clever by half in dealing with the taxman. Time and again, it has been observed that tax authorities are known to plug loopholes even when they are legal. When it is an open-and-shut case, it gets trickier for companies. Also watch | Gravitas: Swiggy and Zomato facing tax troubles × If Zomato and Swiggy are indeed delivery companies that charge delivery fees, they have to be seen as service companies that are bound to pay service tax on the charges. But the problem is that food is a complex business. Raw materials do not cost as much in making a cooked item as other incidental costs involved in packaging, managing restaurant premises and maintaining a labour force. Being venture capital-funded companies usually means that the likes of Zomato and Swiggy cannot think of themselves as just glorified courier companies. So they get into partnerships and promotional work in complex business models that take their work into a fuzzy zone. Trying to convert some of that fuzziness into profit-sharing opportunities while also being a delivery company puts them in the position of Mullah Nasruddin's wife Fatima. You cannot eat the meat and say the cat ate it without knowing how the balance works. As it turns out, tax authorities may be slow to understand it all, but when they come down on an industry, they do so pretty hard. As a perceptive research paper said: "Swiggy’s revenue is based on three major streams- Advertising, Commission, and delivery fees whereas the three key pillars that drive Zomato’s revenue are Food Delivery, Dining Out, and Hyperpure (formerly sustainability)." To some extent, food delivery companies that run websites that have content and logistical muscle can add the apples of commission revenues with the oranges of service fees. However, in a cut-throat business where competition is intense but profit margins are high, there is a roller-coaster approach to promotions, technology, and partnerships. Zomato's early honeymoon with big restaurants as a dine-in demand provider ran into hiccups when high-end restaurants found the platform not as palatable as their gourmet food. Perhaps it is time for venture capitalists and entrepreneurs to realise that complicated business models can boomerang while simple business models may not be alluring to investors. You have to strike a balance somewhere. How about realistic valuations? And how about realising that a software platform with a bunch of delivery staff is what you really are. Keeping it simple is not a bad idea, though that might take some sheen of the high-tech image. (Disclaimer: The views of the writer do not represent the views of WION or ZMCL. Nor does WION or ZMCL endorse the views of the writer.)

As taxman tightens GST noose, Swiggy and Zomato need to learn the power of simplicity

GST authorities have served show cause notices totaling Rs1 trillion to online gaming companies for alleged tax evasion thus far, a senior official was quoted as saying by news agency PTI on Wednesday.

India: Tax crackdown on online gaming companies, GST authorities issue notices

The GST Council, during its recent meeting chaired by Finance Minister Nirmala Sitharaman, made a significant recommendation regarding the tax rates for flour containing at least 70 per cent millets. The decision aims to support the promotion of millets during what has been termed the "year of millets."

Under the new recommendation, food preparations of millet flour in powder form, consisting of a minimum of 70 per cent millets by weight, fall under HS 1901.

When millet flour is blended with other flours and the millet composition remains at 70 per cent, it will be subject to zero per cent GST if sold in a form other than pre-packaged and labelled. However, if sold in pre-packaged and labelled form, a 5 per cent GST will apply.

Finance Minister Sitharaman emphasised the council's desire to actively participate in promoting millets, highlighting the role of GST in this project.

Also read |&nbsp;<a href="https://www.wionews.com/india-news/pm-modis-assassination-threat-demands-for-bishnois-release-in-email-triggers-heightened-security-report-643585">PM Modi’s assassination threat, gangster Bishnoi’s release demand in email triggers security alarm: Report</a>

<h2>Official release confirms GST rates</h2>

An official release subsequently clarified the decision on GST rates for "food preparation of millet flour in powder form, containing at least 70 per cent millets by weight," falling under HS 1901.

The new rates will come into effect from the date of notification. The release confirms that these products will be subject to zero per cent GST if sold in forms other than pre-packaged and labeled, and a 5 per cent GST if sold in pre-packaged and labelled form.

Also watch |&nbsp;India begin World Cup campaign against Australia

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This decision reflects the government's ongoing commitment to encouraging the consumption of millets, which are known for their nutritional benefits.

(With inputs from agencies)

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The GST Council, during its recent meeting chaired by Finance Minister Nirmala Sitharaman, made a significant recommendation regarding the tax rates for flour containing at least 70 per cent millets.

The GST Council, during its recent meeting chaired by Finance Minister Nirmala Sitharaman, made a significant recommendation regarding the tax rates for flour containing at least 70 per cent millets. The decision aims to support the promotion of millets during what has been termed the "year of millets." Under the new recommendation, food preparations of millet flour in powder form, consisting of a minimum of 70 per cent millets by weight, fall under HS 1901. When millet flour is blended with other flours and the millet composition remains at 70 per cent, it will be subject to zero per cent GST if sold in a form other than pre-packaged and labelled. However, if sold in pre-packaged and labelled form, a 5 per cent GST will apply. Finance Minister Sitharaman emphasised the council's desire to actively participate in promoting millets, highlighting the role of GST in this project. Also read | PM Modi’s assassination threat, gangster Bishnoi’s release demand in email triggers security alarm: Report Official release confirms GST rates An official release subsequently clarified the decision on GST rates for "food preparation of millet flour in powder form, containing at least 70 per cent millets by weight," falling under HS 1901. The new rates will come into effect from the date of notification. The release confirms that these products will be subject to zero per cent GST if sold in forms other than pre-packaged and labeled, and a 5 per cent GST if sold in pre-packaged and labelled form. Also watch | India begin World Cup campaign against Australia This decision reflects the government's ongoing commitment to encouraging the consumption of millets, which are known for their nutritional benefits. (With inputs from agencies) WATCH WION LIVE HERE:

No GST on flour with 70% millets if sold in loose form: FM Nirmala Sitharaman

Online gaming companies will impose a 28% GST on the entire amount of bets starting on October 1. Additionally, offshore platforms operating in India will need to register for GST.

India | 28% GST on online gaming: Gaming platforms to be GST registered from October 1

India: Online gaming companies to collect 28% on full bet value

As the extraordinary session of Parliament begins today, Prime Minister Narendra Modi is addressing the Lok Sabha. The session is being held at the old Parliament building, but MPs will move in on September 19, the second day of the session. At an all-party conference organised by the government on the eve of the special session, Parliamentary Affairs Minister Pralhad Joshi notified floor leaders of political parties about the action.

Parliament Special Session LIVE: PM Modi says, 'from GST to Article 370, Parliament has seen it all'

Indian cabinet approved a bill to amend the Central GST Tax. It implemented a 28% GST, or Goods and Services Act, on online gaming, casinos, and horse racing. But there's an ongoing no-trust vote debate in parliament. And the monsoon session ends on Friday, 11th August.

28% GST on online gaming:  Will India bring an ordinance?

Online gaming company Mobile Premier League (MPL) has decided to slash 350 jobs after India decided to increase Goods and Service Tax (GST) on gamers and gaming companies to 28 per cent, Mint reported.

MPL’s founders Sai Srinivas and Shubh Malhotra in a late Tuesday email thanked their employees while saying that the last month has been challenging and uncertain for the company.

“The new rules will increase our tax burden by as much as 350 to 400 per cent. As a business, one can prepare for a 50 per per cent increase, but adjusting to a sudden increase of this magnitude means we need to make some very tough decisions,” Mint quoted the email as saying.

Quoting sources, Mint reported that the company confirmed that layoffs would be effective at the entry level while MPL declined to make any statements.

“In a short span of four years, we have achieved a lot. MPL India was on track to continue the amazing business performance we have seen since December when we turned EBITDA positive,” the email from the founders further said while addressing the additional costs leading to the large number of job slashes.

The Bengaluru-based startup is supported by Sequoia Capital, which led a $35.5 million fundraising round in 2019. In 2022, VCCircle reported that the firm had cut off 100 employees, or around 10 per cent of its workforce, stating that it would no longer pursue “growth at any cost” and would instead pursue “profitable growth.” It also left the Indonesian market that year.

Three fantasy sports platforms - DreamSports-owned Dream11, Games24x7-owned My11Circle, and Galactus Funware Technology-owned MPL - are among India’s top gaming corporations, and the industry is estimated to be worth $2-2.5 billion by the All-India Gaming Federation.

According to highly placed industry sources citing data from Singapore’s Accounting and Corporate Regulatory Authority (ACRA), M-League Private Limited, Galactus’ Singapore-based parent company, spent $92 million on advertising and promotional expenses in financial year 2022, an 81 per cent increase over financial year 2021. This increase in spending significantly contributed to its losses increasing threefold from financial year 2021 to $149 million in financial year 2022.

India decided to carry forward with the 28 per cent GST on the sector. To prevent or delay these enterprises from shifting their headquarters offshore and to protect their clients from the additional GST burden, the Council has suggested that even offshore entities offering such online money games to Indian consumers must register and pay GST. According to gaming companies, this could severely harm the sector.

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Online gaming company Mobile Premier League (MPL) has decided to slash 350 jobs after India decided to increase Goods and Service Tax (GST) on gamers and gaming companies to 28 per cent, Mint reported.

Online gaming company Mobile Premier League (MPL) has decided to slash 350 jobs after India decided to increase Goods and Service Tax (GST) on gamers and gaming companies to 28 per cent, Mint reported. MPL’s founders Sai Srinivas and Shubh Malhotra in a late Tuesday email thanked their employees while saying that the last month has been challenging and uncertain for the company. “The new rules will increase our tax burden by as much as 350 to 400 per cent. As a business, one can prepare for a 50 per per cent increase, but adjusting to a sudden increase of this magnitude means we need to make some very tough decisions,” Mint quoted the email as saying. Quoting sources, Mint reported that the company confirmed that layoffs would be effective at the entry level while MPL declined to make any statements. “In a short span of four years, we have achieved a lot. MPL India was on track to continue the amazing business performance we have seen since December when we turned EBITDA positive,” the email from the founders further said while addressing the additional costs leading to the large number of job slashes. The Bengaluru-based startup is supported by Sequoia Capital, which led a $35.5 million fundraising round in 2019. In 2022, VCCircle reported that the firm had cut off 100 employees, or around 10 per cent of its workforce, stating that it would no longer pursue “growth at any cost” and would instead pursue “profitable growth.” It also left the Indonesian market that year. Three fantasy sports platforms - DreamSports-owned Dream11, Games24x7-owned My11Circle, and Galactus Funware Technology-owned MPL - are among India’s top gaming corporations, and the industry is estimated to be worth $2-2.5 billion by the All-India Gaming Federation. According to highly placed industry sources citing data from Singapore’s Accounting and Corporate Regulatory Authority (ACRA), M-League Private Limited, Galactus’ Singapore-based parent company, spent $92 million on advertising and promotional expenses in financial year 2022, an 81 per cent increase over financial year 2021. This increase in spending significantly contributed to its losses increasing threefold from financial year 2021 to $149 million in financial year 2022. India decided to carry forward with the 28 per cent GST on the sector. To prevent or delay these enterprises from shifting their headquarters offshore and to protect their clients from the additional GST burden, the Council has suggested that even offshore entities offering such online money games to Indian consumers must register and pay GST. According to gaming companies, this could severely harm the sector. WATCH WION LIVE HERE

Mobile Premier League to slash 350 jobs after 28 pc GST burden 

The GST Council on Wednesday decided to levy a 28 per cent GST on online gaming and casinos on the face value of bets at entry level, even though three states -- Delhi, Goa and Sikkim -- expressed dissent.

The Centre will bring amendments to the Central GST law in the ongoing monsoon session of Parliament, following which states will pass the amendments in their respective assemblies to pave way for introduction of changes in law by October 1.

"The valuation may be done based on the amount paid or payable 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 and bets and not on the total value of each bets placed. Entry (level) whatever they pay to get chips and not what they pay in each game," finance minister Nirmala Sitharaman said.

Giving an example, she said if a bet is placed for say Rs 1,000, and the player wins Rs 300, then if the player again places a bet of Rs 1,300, then GST will not be levied on the winning amount. 
 
A review of the taxation of online gaming and casinos will be undertaken after 6 months or around April 2024 to see if any change in rules is required.

Briefing reporters after the 51st GST Council meeting here, Sitharaman said for the purpose of GST levy, the valuation of supply of online gaming and casinos will be done based on the amount paid or deposited with the supplier, excluding the winning amount in the bet.

Revenue secretary Sanjay Malhotra said that offshore gaming platforms will have to register themselves with the GST authorities.

Also read: <a href="https://www.wionews.com/india-news/another-cheetah-found-dead-in-indias-kuno-national-park-as-furious-foreign-experts-move-to-top-court-621646">Another cheetah found dead in India's Kuno National Park as furious foreign experts move top court</a>

In case they do not follow the law, the government will invoke the provisions of the Information Technology Act to block those sites, Malhotra added.

The GST Council -- the highest decision making body of the new indirect tax regime that comprises Union finance minister and representatives of all states -- discussed the language of amendments that will be needed to enabling taxing of online gaming and casinos.

"We will undertake amendments to CGST Act at the earliest, in this session itself. From October 1, it will be implemented," Sitharaman said.

Malhotra said the amendments will specifically define online gaming, online money gaming, virtual digital assets used to pay for online games, and supplier in case of online gaming. 
Asked about the impact on the ongoing legal cases in case of online gaming, Malhotra said the decision of the GST Council is only clarificatory in nature as online gaming was always an actionable claim in the nature of betting and gambling on which 28 per cent GST is leviable.

The Council had at its meeting last month decided to levy a 28 per cent GST on full face value of bets placed and Wednesday's meeting was to deliberate on the tax law changes that would be required to implement it.

Sitharaman said Delhi finance minister opposed 28 per cent tax on online gaming and wanted the matter to go back to group of ministers. Goa and Sikkim, whose revenues come from casinos, said 28 per cent GST should be levied on GGR (gross gaming revenue) or platform fees and not on face value.

Sitharaman, however, said other states, including Chhattisgarh, West Bengal, Karnataka, Gujarat, Maharashtra and Uttar Pradesh, wanted the decision taken at the Council meeting last month to be implemented at the earliest.

&nbsp;

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The GST Council on Wednesday decided to levy a 28 per cent GST on online gaming and casinos on the face value of bets at entry level, even though three states -- Delhi, Goa and Sikkim -- expressed dissent.

The GST Council on Wednesday decided to levy a 28 per cent GST on online gaming and casinos on the face value of bets at entry level, even though three states -- Delhi, Goa and Sikkim -- expressed dissent. The Centre will bring amendments to the Central GST law in the ongoing monsoon session of Parliament, following which states will pass the amendments in their respective assemblies to pave way for introduction of changes in law by October 1. "The valuation may be done based on the amount paid or payable 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 and bets and not on the total value of each bets placed. Entry (level) whatever they pay to get chips and not what they pay in each game," finance minister Nirmala Sitharaman said. Giving an example, she said if a bet is placed for say Rs 1,000, and the player wins Rs 300, then if the player again places a bet of Rs 1,300, then GST will not be levied on the winning amount. A review of the taxation of online gaming and casinos will be undertaken after 6 months or around April 2024 to see if any change in rules is required. Briefing reporters after the 51st GST Council meeting here, Sitharaman said for the purpose of GST levy, the valuation of supply of online gaming and casinos will be done based on the amount paid or deposited with the supplier, excluding the winning amount in the bet. Revenue secretary Sanjay Malhotra said that offshore gaming platforms will have to register themselves with the GST authorities. Also read: Another cheetah found dead in India's Kuno National Park as furious foreign experts move top court In case they do not follow the law, the government will invoke the provisions of the Information Technology Act to block those sites, Malhotra added. The GST Council -- the highest decision making body of the new indirect tax regime that comprises Union finance minister and representatives of all states -- discussed the language of amendments that will be needed to enabling taxing of online gaming and casinos. "We will undertake amendments to CGST Act at the earliest, in this session itself. From October 1, it will be implemented," Sitharaman said. Malhotra said the amendments will specifically define online gaming, online money gaming, virtual digital assets used to pay for online games, and supplier in case of online gaming. Asked about the impact on the ongoing legal cases in case of online gaming, Malhotra said the decision of the GST Council is only clarificatory in nature as online gaming was always an actionable claim in the nature of betting and gambling on which 28 per cent GST is leviable. The Council had at its meeting last month decided to levy a 28 per cent GST on full face value of bets placed and Wednesday's meeting was to deliberate on the tax law changes that would be required to implement it. Sitharaman said Delhi finance minister opposed 28 per cent tax on online gaming and wanted the matter to go back to group of ministers. Goa and Sikkim, whose revenues come from casinos, said 28 per cent GST should be levied on GGR (gross gaming revenue) or platform fees and not on face value. Sitharaman, however, said other states, including Chhattisgarh, West Bengal, Karnataka, Gujarat, Maharashtra and Uttar Pradesh, wanted the decision taken at the Council meeting last month to be implemented at the earliest. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

India: 28 per cent GST on online gaming to stay; will be reviewed after 6 months of roll-out

the Indian government on Tuesday decided to impose 28 goods and services tax on online Indian gaming companies as well as in horse racing and also for casinos. After the announcement, the shares of the Indian gaming companies fell pretty drastically.

Indian gaming companies under tax radar

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