GST on Online Gaming: Law Committee of GST Council recommends GST Amendment to quash Retrospective Demands [Read More]

The GST Council's law committee has proposed an amendment to the GST Act to address low tax payments due to interpretation issues. The amendment introduces Section 11A to the CGST Act, 2017, allowing the government to refrain from recovering GST not levied due to general practices.\r

This change could cancel numerous tax notices, particularly benefiting the online gaming industry. However, it does not allow refunds for overpaid taxes. The GST Council, led by Finance Minister Nirmala Sitharaman, will review this proposal and the 28% GST on online gaming on June 22. \r

In FY 2023-24, tax evasion cases totaled Rs 1.98 lakh crore, with over Rs 1 lakh crore involving online gaming.