Daily Archives: November 26, 2022

October GST collections cross Rs 1.51 lakh crore, second highest on record

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October revenue is the second highest monthly collection after April 2022

The government collected Rs 1.52 lakh crore in Goods and Services Tax (GST) in October. It was up 16.6% year-on-year due to festival-related spending, higher tax rates and better compliance. This was the second highest monthly collection since the indirect tax regime came into force in July 2017. GST collection in April reached a record level of Rs 1.67 lakh crore.

Of the total GST total expenditure in October, Central GST (CGST) was Rs 26,039 million, State GST (SGST) Rs 33,396 million, Integrated GST (IGST) Rs 81,778 million (collected on import of goods). Seth’s cost was Rs.10,505. (including Rs 825 crore collected on import of goods), according to preliminary data released by the Finance Ministry on Tuesday.

“This is the ninth and eighth consecutive month when monthly GST receipts have crossed Rs 1.4 lakh crore,” the ministry said.

In September 2022, 83 million e-way invoices were generated, as against 77 million in the previous month.

Economists expect CGST collections to exceed the FY23 budget estimates of Rs 1.3-1.4 trillion.

“The sharp rise in October GST collection headlines reflects a combination of quarter-end inflows related to deals from the previous month and an increase in GST e-way invoices ahead of a strong festive season. With the festive season in October, GST e-way ICRA Chief Economist Aditi Nayar said the way bill generation is expected to remain high, it should strengthen collections in November.

Nair said the year-on-year growth in GST collections is expected to come down in October given the normalization base and this may continue in the coming months as well. “CGST collections are expected to exceed BE 1.3-1.4 trillion in 2023,” he added.

The CGST target has been set at Rs 6.6 trillion, excluding compensation tax, in the 2022 budget.

Further, the total revenue of the Center and the State for October was Rs 74,665 for CGST and Rs 77,279 for SGST after regular and provisional settlement.

October GST collections exceed INR 1,510 crore, the second highest on record, with major states reporting an increase in collections, indicating it is a widespread phenomenon across the country. The collection by the state saw an increase of 18% as compared to the same period last year.
Saurabh Agarwal, Tax Partner, EY India, said:

Agarwal said, “Both the revenue departments (CBDT and CBIC) are responsible for increasing the tax collection, so we can expect good collections in the coming months. It seems that it is on the way to become a self-sufficient economy.”

Center released Rs 17,000 crore GST compensation to states, says finance ministry

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The Union government has released Rs 1.7 crore to states to balance GST compensation, the Finance Ministry said on Friday, taking the total amount released so far this year to over Rs 1.15 crore.

“With this announcement, the Center has pre-announced the entire amount of cess, which is expected to be collected by the end of March this year, and made it available for payment of compensation to the states,” the ministry said in a statement. Has gone.” Farm.

The Goods and Services Tax (GST) was introduced from 1 July 2017, and the state is guaranteed compensation for loss of income due to the implementation of GST for a period of 5 years.

To provide compensation to the state, sales tax is levied on certain items and the amount of sales tax collected is deposited in the compensation fund.

The Central Government has released Rs 170 crore to the State/UT on 24 November 2022 for the balance GST compensation for the period April to June 2022. The amount for 2022-2023 is Rs 115,662 billion, the statement said.

“This is despite the fact that the total cess collection till October 2022 is only 72,147 kroner, with the remaining 43,515 kroner being released by the Center from its own resources,” the ministry said.

He said the decision was taken to enable the state to manage its resources and ensure that programmes, especially capital expenditure, were successfully implemented during the financial year.

(Only the headline and photos in this report may have been modified by Business Standard staff. The rest of the content is automatically generated from syndicated feeds.)

GST discussions on online games, casinos and racing issues

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Goods and Services Tax (GST) regime for casinos, racetracks and online games has broken the previous rule that all three categories, with or without games, will be taxed at a flat rate of 28%. Positions may be repeated. skills or opportunities.

However, GoM members disagree on whether to collect platform fees or the full amount paid by participants, so the final decision on the evaluation mechanism will be made by his GST Council.

The panel will meet on Tuesday (22nd November) and is likely to return to his first report to the GST Council in June. This marks an increase in tax rates for online games, as the online gaming platform currently only pays his 18% GST on platform fees instead of the full amount including winnings.

The online gaming industry has grown exponentially during the COVID-19 pandemic. According to a recent study by EY and Assocham, online gaming now contributes to his GST of over Rs 220 crore. According to a KPMG report, the online gaming industry is projected to grow from 136 billion rupees in 2020-21 to 290 billion rupees in 2024-25.

What did GoM discuss?

Most GoM states are known to support a tax rate of 28%, but have different evaluation mechanisms. West Bengal and Uttar Pradesh are in favor of a net worth tax, while Goa is proposing a tax at the entrance to casinos.

Comments from all countries will be incorporated into the final report to be submitted to the next Board meeting. The GST Council has not met him since June. State Finance Ministers are scheduled to meet with Federal Finance Minister Nirmala Sitharaman on Friday for pre-budget discussions that may include GST-related issues.

What did GoM say before?

His eight-member ministerial committee, headed by Meghalaya Chief Minister Konrad Samma, had submitted a report to the council that was discussed at its meeting in June. GoM proposes a flat tax rate of 28% for casinos, racetracks and online games. However, it does not distinguish whether the activity is a game of skill, a game of chance, or both.

At two meetings in May this year, the government “broadly agreed that these activities should be taxed because of their nature and negative externalities” and carry “economic risks and addiction”. I agreed.

GoM was granted a 15-day extension after the 47th GST Commission meeting in June, mainly after concerns about casinos were raised by one state – Goa.

GOM observed that while casinos pay his GST of 28% on betting and gambling in full, the online gaming industry does not consider online games to be subject to litigation other than betting and gambling. Therefore, GoM believes that taxation should be uniform.

The discussion then focused on evaluation. These activities are to suggest whether a game’s gross earnings or net worth should be taxed, and the mechanisms for calculating GGR or net worth.

What are the evaluation hotspots?

Regarding the casino’s valuation, GoM suggested that he would impose a 28% excise tax on the total denomination of chips/coins that players purchased from the casino, and that he would impose a one-time goods tax on chip/coin purchases. impose a tax. value), GST is no longer taxed on the amount of bets made per round. This includes bets made using winnings from previous rounds.

Also, on entry services to the casino he imposes his GST of 28% and proposes to calculate/pay an entry fee which includes the price of one or more items, mainly food, beverages etc. I’m here.

For horse racing and gambling, the GoM has concluded that 28% GST will be charged on the face value of the wager.