Page 11 - Banking Finance September 2023

ROUNDUP

required to comply with this manda- mark for the fifth time since the Delhi government’s representative
tory norm, which will swell to around rollout. sought a fresh review for the online
10 lakh after lowering the threshold, gaming sector, but most other States
GST revenue collected last month was
says Dheeraj Rastogi, an Indian Rev- leaned towards sticking to the Council’s
Rs 1,65,105 crore of which Central GST
enue Service Officer of 1994 batch and decision last month which had been
- the tax levied on intra-state supplies
Executive Vice President with GSTN. of goods and services by the Centre - taken after three years of delibera-
This number does not include ex- tions, the Finance Minister conveyed
was Rs 29,773 crore, State GST - the
empted categories such as banks, Non- tax levied on intra-state supplies of after the virtual meeting.
Banking Financial Companies or insur- goods and services by the states - was The online gaming industry, which had
ance companies. Rs 37,623 crore, Integrated GST - the termed the Council’s decision a death
tax levied on all inter-state supplies of
As per Rule 48(4) of CGST Rules, noti- knell endangering billions of dollars of
goods and services - was Rs 85,930 investments and thousands of jobs in
fied class of registered persons have to
crore (including Rs 41,239 crore col-
prepare an invoice by uploading speci- the sunrise sector, remained anxious
lected on import of goods) and cess
fied particulars of the invoice (in FORM but appreciated a critical clarification
was Rs 11,779 crore (including Rs 840
GST INV-01) on Invoice Registration on the valuation rules for the 28% levy,
crore collected on import of goods).
Portal (IRP) and obtain an Invoice Ref- approved by the Council.
erence Number (IRN). After following
the above 'e-invoicing' process, the in- GST Council sticks to its LPG price cut can save Rs
voice copy containing inter alia, the
guns, imposes 28% tax on 18,500 crore for Indians
IRN (with QR Code) issued by the noti-
fied supplier to the buyer is commonly online gaming After announcing a reduction of Rs 200
per cylinder, the government is likely
referred to as 'e-invoice' in GST. The GST Council on August 2 blinked a
to freeze LPG prices for the remaining
little on technicalities and kept the
Because of the standard scheme, 'e-
seven months of the fiscal year, saving
door open for a review down the road,
invoicing' facilitates the exchange of
customers about Rs 18,500 crore. De-
but stuck to its earlier decision to im-
the invoice document (structured in-
pose a 28% levy on the full face value spite the cut, staterun fuel retailers
voice data) between a supplier and a
of bets placed on online gaming, casi- are left with an estimated profit of
buyer in an integrated electronic for-
nos and horse racing, with an eye on more than Rs 100 per domestic refill.
mat. It is important to note that 'e-
implementing it from October 1. The government has decided to com-
invoice' in 'e-invoicing' doesn't mean
the generation of an invoice by a gov- Finance Minister Nirmala Sitharaman, pensate them for any possible losses
ernment portal. The invoice not regis- who chaired the Council’s meeting, after reconciling the accounts for the
tered on the portal will not be valid. said the Centre would now strive to year, sources said. OMCs are estimated
In such a situation, input tax credit amend the Goods and Services Tax to have made a combined profit of
(ITC) on the same cannot be availed by (GST) law in Parliament’s current ses- 22,100 crore in the April-June quarter,
the recipient and will attract applicable sion itself to enable the implementa- higher than 20,800 crore in the Janu-
penalties. tion of the levy, despite dissent from ary-March period and a loss of 18,500
Sikkim and Goa over the modalities of crore in the year-ago quarter, ICICI
the tax for casino users. Securities said in a report recently.
GST collection rises 11% to
Tamil Nadu Finance Minister Thangam Oil Minister Hardeep Singh Puri in tele-
Rs. 1.65 lakh crore
Thennarasu raised concerns about the vision interviews on Wednesday said
Gross Goods and Services Tax (GST) levy’s impact on the State-wide ban on the three oil marketing companies cut
collections grew 10.8 per cent to Rs online gaming, which Ms. Sitharaman the prices as "good corporate citizens"
1.65 lakh crore in July, marking the said would be addressed in the lan- and the extension of "very healthy
third highest level since the rollout of guage of the new norms to explicitly profits" of April-June (the first quarter
the indirect tax regime in July 2017 state the tax cannot be levied where of the current fiscal) in the following
and crossing the Rs 1.6 lakh crore a ban is in place. months will help their decision.

BANKING FINANCE | SEPTEMBER | 2023 | 11