TaxTMI 
TaxTMI 
TaxTMI 
Minutes of the 51st Meeting of GST Council held on 02nd August, 2023
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....luation Rules- Rule 31B and Rule 31C - 1.3 The Secretary to the GST Council, welcomed all the Hon'ble Members of the Council and participating officers to the 51st meeting of the GST Council. 1.4 The Secretary on behalf of the Council, welcomed Dr. Pramod Sawant, Hon'ble Chief Minister, Goa to his very first Council Meeting. The Secretary also welcomed Sh. Ajit Pawar, Hon'ble Deputy Chief Minister, Maharashtra and Sh. B. D. Kalla, Hon'ble Member from Rajasthan who were attending GST Council meeting after some time gap. 1.5 The Secretary appreciated the immense contribution made by Sh. Vivek Johri, ex-Chairman, CBIC to the Council who had superannuated on 31/07/2023. 1.6 The Secretary stated that the GST Council in its 50th meeting had made certain recommendations on taxation of casinos, race courses and online gaming and recommended levy of 28% GST on the face value. Many Hon'ble Members had requested to make corresponding amendments in various GST Acts and Rules at the earliest. The amendments have been drafted by the Law Committee and they form the main agenda for this Council meeting. The Secretary informed that the Law Committee had invited officers fro....
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.... decisions of the GST Implementation Committee (GIC). Decision: The Council ratified the notifications and circulars issued based on the recommendations by the GST Council and took note of the decisions of GST Implementation Committee. * 3. Agenda Item 2 :- Proposal for making amendments to the CGST Act, 2017, IGST Act, 2017, CGST Rules, 2017 and issuance/amendment of the Notifications pertaining to the Casino, Online gaming and Horse Racing 3.1 The Pr. Commissioner, GST Policy took up the next agenda regarding amendments in CGST Act, IGST Act, CGST Rules, and issuance of notifications pertaining to taxability of online gaming, casinos, etc. He made the detailed presentation (attached as Annexure-3) on the recommendations made by the Law Committee and the discussion made in the Officers' meeting on the said agenda. He stated that the Revenue Secretary had already mentioned that the actionable claims supplied in casinos, online gaming, and horse racing were agreed to be made taxable at 28% on full face value irrespective of whether activities are games of chance or game of skill in 50th GST Council Meeting. He stated that the matter was discussed in the two meeting of the Law....
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....5 of IGST Act is proposed to be amended so that the integrated tax on goods, other than goods as may be notified by the Government on the recommendations of the Council, imported into India shall be levied and collected in accordance with the provisions of Section 3 of the Customs Tariff Act, 1975 on the value as determined under the said Act at the point when duties of customs are levied on the said goods under Section 12 of the Customs Act, 1962. 3.7 A new Section 14A is proposed to be inserted in IGST Act to provide for special provision for taxability of supply of online money gaming by a person located outside the taxable territory to a person in India, inter-alia to specify liability on the said supplier for payment of integrated tax on such supply. Section 14A also provides the provision of a single registration of the said supplier through the Simplified Registration Scheme and the power to the Government for blocking of access by the public in case of failure to comply with the provisions. He, thereafter, stated that besides these amendments, there are some other amendments that are proposed in CGST Act and IGST Act which are detailed in the agenda and were discussed....
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....ctly be used in the slot machines instead of tokens or coins to address which it was proposed to add a sub-clause (ii) in Rule 31C in the definition to provide that value of supply shall be the total amount paid or payable by or on behalf of the player for participating in any event, including game, competition or any other activity or process, in the casino, in cases where the token, chips, coins or tickets, by whatever name called, are not required. 3.12 Further, he also stated that, it is proposed to add an Explanation to Rule 31B and Rule 31C to state that any amount received by the player by winning any event, including game, scheme, competition or any other activity or process, which is further used for playing by the said player in an event without withdrawing, shall not be considered as the amount paid or deposited with the supplier by or on behalf of the said player. This recommendation was agreed upon in the officer's meeting. 3.13 He further mentioned that in the Officers' meeting, Sikkim, Goa and Karnataka had raised the issue of treatment of refund/ return of the money to the players on account of unused ....
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....lace of supply. This issue was discussed and it was recommended that whether pin code or State code would be sufficient for the determination of Place of Supply is a broader issue related to online supplies of various goods and services. This aspect should be decided in the case of all the online supplies of goods and services and Law Committee should examine it and then bring it before the Council. He further stated that the suggestion of Haryana to include "virtual digital assets" in the definition of "consideration" in section 2 (31) of the CGST Act 2017 was also discussed and it was noted that this is also a larger issue and requires separate examination by the Law Committee. 3.17 The Pr. Commissioner, GST Policy then took up the suggestion put forth by Gujarat wherein it was suggested that amendment may be made in section 17(5) of CGST Act for blocking of the ITC on account of tax paid by business entities for their employees in relation to online gaming or casinos. He stated that the issue was discussed in Officers' meeting and it was recommended that this issue can be separately examined by Law Committee, as th....
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....uld adversely affect the casino industry leading to its closure. Non-refund of tax on return of chips in casino sector will promote unethical practices in the casino industry and requested for re-consideration of this issue in GST Council meeting. 3.23 The Hon'ble Member from Kerala informed that he is in general agreement with the decision taken in 50th GST Council Meeting. However, he raised the issue of Place of Supply in case of online gaming and suggested that in case of online gaming, recording of PIN code of the recipient should be made mandatory. He therefore requested that specific provision for recording of PIN code be notified so that consuming State could get their due revenue. 3.24 The Secretary suggested that the issue of requirement of PIN code of the recipient and Place of Supply is a larger issue and not only related to online gaming but also to other online supplies as well. Therefore, it may be separately examined in detail by the Law Committee including all cases of online supply of goods and services. He also recommended that the Law Committee should come up with the formulation in the future GS....
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....ore, clubbing online gaming with betting and gambling under GST Law would be contrary to the spirit of the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 and even imposition of same 28% tax rate on online gaming does not separate online gaming from betting and gambling. Therefore, these should be kept in different categories. He requested that the recommendation of GST Council to levy tax on the full face value paid for casino, race course and online gaming should be examined in detail before taking final decision regarding the value of supply. 3.28 The Hon'ble Member from Bihar supported the proposal to levy higher tax rate on gambling as it would not only increase the revenue of the Centre and States but it also has social and moral connotations. The Hon'ble Member further requested the Members of the Council to bring the proposed amendment bill to implement recommendation of GST Council on casino, race course and online gaming as soon as possible. The Hon'ble Member from Bihar thanked the Chairperson for inclusion of settlement amount of States in PIB releases. Fu....
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....ion. The Hon'ble Member from Chhattisgarh also suggested to have some provision for continuing Compensation Cess for two affected States if they suffer fall in their revenue. He reiterated to stick to the decision of the GST Council and implement the rules accordingly. 3.33 The Revenue Secretary thanked the Hon'ble Member from Chhattisgarh and clarified that his suggestions on online games with stakes and games without stakes will be considered. 3.34 The Hon'ble Member from Meghalaya stated that he had two points to make. First point was regarding Rule 31B which states that the supply shall be total amount paid to or deposited with the supplier by way of money or money's worth. He informed that there are three scenarios in this online gaming taxation. The first scenario which prevailed before the bringing the proposal of taxation of casino, race course and online gaming in GST Council which means that 18% tax was being charged on platform fee on every transaction being played. The second scenario in which tax at the rate of 28% on full amount of each game would lead to large amount of taxation. In the thi....
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....suggested that we may increase the rate of tax but keep the valuation on GGR which will also take care of demand of Goa and Sikkim. 3.37 The Hon'ble Member from Puducherry stated that the UT of Puducherry proposed to ban online gaming and they are awaiting suggestions from Ministry of Home Affairs and MeitY for bringing legislation to ban online games. The Hon'ble Member also expressed his agreement with taxing of betting, gambling, casinos, online games at 28% on face value. Apart from that, in order to give a wider definition, the word "wagering" which means 'risk (a sum of money or valued items) against someone else on the basis of the outcome of an unpredictable event may be included in section 2(102A) of CGST Act, 2017. 3.38 The Hon'ble Member from Andhra Pradesh stated that the State of Andhra Pradesh reiterates its stand taken in the, last GST council meeting. He stated that the issue of taxation on casino, race course and online gaming involves both taxation from the GST point of view and revenue from the State point of view. The Member highlighted the issue regarding hill States, North-Eastern States with inter....
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....he Hon'ble Member emphasised that public perception should be taken into account during framing of laws & rules in matter of taxation. He further stated that States should strive to utilize its resources and promote tourism to augment revenue rather than basing the economy solely on Casino. The Hon'ble Member supported the proposal of Kerala on the subject of Place of Supply and expressed his agreement to the matter to the Law Committee. 3.42 The Hon'ble Member from West Bengal stated that the Council had taken the decision in its 50th meeting on the issue of Casinos, Race Course and Online Gaming after discussions and it should not be reopened. She expressed agreement with the Hon'ble Member from Uttar Pradesh that the issue had come to an end as the entire issues was discussed in last meeting of the Council held on 11th July, 2023 and the present matter of discussion was regarding changes in proposed Rules by the Law Committee. It is always open for the Council to re-visit it if anyone finds difficulties. 3.43 The Secretary added that as most of members agreed to the proposal in the agenda, the amendmen....
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....d allow for a timely implementation of the decision while also providing an opportunity to assess any adverse effects on the concerned Sectors in due course, if any. 3.48 On the request of the Secretary, the Member (Compliance), CBIC apprised the Council about the offshore Online Gaming Companies. He stated that the matter regarding these Companies was investigated by the Director General of GST Intelligence and the Companies which were not compliant with the GST laws, were referred to the MEITY for blocking. He apprised the Council that an order for blocking these Companies has been passed by the METTY which was now being implemented by the DoT. 3.49 The Hon' ble Member from Delhi stated that she did not doubt the intent of the Council but was concerned about the IT abilities of these illegal Companies. She pointed out that the time taken by the Government procedure and formalities to pass an order for blocking these Companies resulted in *creation of a number of mirror websites by these setups. She stated that if the recommendation to include online money gaming as an actionable claim is to be implemented, then the....
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....rns. The Chairperson reiterated that the issues at hand had been subject to extensive deliberations and re-deliberations over the past three years. The Council was committed to making an informed and thoughtful decision that considered all perspectives and potential consequences. 3.53 The Hon'ble Member from Meghalaya concurred with the Chairperson acknowledging that every point has been thoroughly deliberated over the course of several years. He reiterated that the decision in question had been reached by consensus during the 50th Meeting of the GST Council. He clarified that the purpose of the current discussion was not to alter the decision taken in the last meeting but rather to progress in determining the full-face value of the supply to be taxed. 3.54 The representative of Goa expressed that he has consistently supported the 28% tax rate as decided by the Council for the Casinos. His concern lies primarily in the methodology to be implemented in the law for its execution. He drew attention to the proposed amendments for online gaming, which he believed bring the relief intended. He emphasized that the Casino Indust....
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..... He advocated closing the matter. In consideration of the affected States, Goa and Sikkim, he proposed referring the matter to the Group of Ministers (GoM) for examination and resolution or providing compensatory measures to address the specific challenges faced by these States in case of Casinos. 3.56 The Hon'ble Member from West Bengal asserted her stance on the matter, firmly stating that the issue has been thoroughly discussed in the current meeting and the 50th Council meeting. She mentioned that the Law Committee had also presented its report and it was imperative to implement it at present. However, she stated that if any adverse consequences arose due to the implementation, the matter could be brought back to the table for further review. 3.57 The CST, Maharashtra sought permission to speak on behalf of the Hon'ble Member from Maharashtra as he was preoccupied in unscheduled and unavoidable work during ongoing Assembly session. The CST presented his views and stated that the decision was taken in the 50th meeting of the Council to charge 28% tax on full face value and the State of Maharashtra was in agre....
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....d that TDS is applicable only when there are winnings and if there are no winnings, there would not be any TDS deduction. 3.65 The Chairperson clarified that TDS is a component of direct taxation. The Chairperson clarified that matter of direct taxation does not fall under the purview of the GST Council. 3.66 The Member from Delhi acknowledged the clarification but suggested that the Council should consider revising the tax rate to provide some relief, as it would add to the overall taxation burden on the gaming industry. 3.67 The Secretary clarified to the Council that the current agenda of meeting solely pertained to the implementation of decisions taken in the 50th Council meeting. The proposed amendments in CGST Act and IGST Act were only meant to provide enabling provisions so that online money gaming like gambling continues to be subject to taxation. He emphasized that these amendments did not concern tax rates or the valuation of supply, which would require going through the legislative process. The valuation methods and tax rates are provided in the Rules and notifications, which can be amended by the Council at any ....
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....e no conflict. 3.71 To address apprehension of Tamil Nadu about the decision being perceived as legalizing online gaming in State of Tamil Nadu where it is banned, the Secretary proposed providing for a provision in the proposed amendments to clarify that the provisions of the amendments do not prejudice any other law and do not intend to legalize any activity that is banned under other laws. The draft of this proposed clarificatory provision could be shared with the State. 3.72 The Member from Tamil Nadu thanked the Council for considering their request and agreed to the proposal for the draft provision to be sent to them. 3.73 The Member from Kerala also raised a similar issue regarding the ban on such activities in their State and expressed satisfaction with the proposal given by the Secretary. 3.74 The Chairperson reiterated that the Council had consulted the ASG to ensure that the proposed amendments would not lead to the liberalization of such activities in States where these are banned. She also mentioned that a clarificatory provision would be formulated and shared with the State of Tamil Nadu. 3.75 The Hon'ble Repr....
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.... review could be conducted after six months of implementation, if needed. Responding to the suggestion from the Hon'ble Member from Goa to review it in three months, she clarified that such a timeline would be too short to get sufficient experience for drawing any definitive conclusion. She then assured that after the six months of its implementation, the Council will table it and review the statistics and the wisdom of the Council will prevail. She sought the cooperation of the Members of GST Council to implement the proposed amendment from 01.10.2023. Decision: The Council agreed to amendments in the CGST Act 2017, IGST Act 2017 and CGST Rules 2017 (along with modifications in proposed rules presented before the Council and detailed in the presentation) and issuance of notification under section 15(5) of CGST Act 2017 and amendment in Notification No. 66/2017-CT dated 15.11.2017. A clarificatory provision would be formulated in consultation with State of Tamil Nadu to the effect that this amendment would not amount to legalizing online gaming, etc which had been banned in Tamil Nadu and included in the amendment bill. NIPFP wi....
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.... Telangana 29 Uttar Pradesh CHAIRMAN'S INITIALS Shri Thangam Thennarasu Shri T. Harish Rao Shri Suresh Kumar Khanna Finance Minister Minister for Public Works Minister, Department of Education (Primary and Secondary Education), Department of Sanskrit Education, Department of Art, Literature, Culture and Archeology, Independent charge of the Department of Primary Education under Panchayati Raj Minister of Tourism & Civil Aviation/Commerce & Industries/Information & Public Relations/Printing and Stationery Department Minister for Finance and Human Resources Management Minister for Finance, Health, Medical & Family Welfare Minister of Finance, Parliamentary Affairs Page 24 of 49 Shipra Shipra MINUTE BOOK 30 Uttarakhand Shri Premchand Aggarwal Smt. Chandrima 31 West Bengal Bhattacharya Minister of Finance, Urban Development, Housing, Legislative and Parliamentary Affairs, Reorganisation and Census Minister of State for Finance Page 25 of 49 CHAIRMAN'S INITIALS MINUTE BOOK Annexure-2 Attendance of officers from the Centre and the States/UTs attending the 51st Meeting of the GST Council held on 02.08.2023 S.No. Name of State/CBIC/GS....
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.... Superintendent 39 GST Council Secretariat Shri Sachin Goel Superintendent 40 40 GST Council Secretariat Ms. Ambika Rani Superintendent 41 GST Council Secretariat Shri Niranjan Kishore Superintendent 42 GST Council Secretariat Shri Rakesh Joshi Superintendent 43 GST Council Secretariat Shri Vijay Malik Inspector 44 GST Council Secretariat Shri Padam Singh Inspector 45 GST Council Secretariat Shri Ashwani Sharma Inspector 46 GST Council Secretariat Shri Rohit Sharma Inspector CHAIRMAN'S 47 GST Council Secretariat Shri Karan Arora Inspector INITIALS Page 28 of 49 Shipra Shipra MINUTE BOOK 48 GST Council Secretariat Shri Tarun Inspector 49 GST Council Secretariat Shri Pankaj Dhaka Tax Assistant 50 GST Council Secretariat Shri Paresh Garg Tax Assistant 51 GST Council Secretariat Shri Shyam Bihari Meena Tax Assistant 52 52 Andhra Pradesh Shri N. Gulzar Secretary Finance(CT) 53 Andhra Pradesh Shri M. Girija Sankar Chief Commissioner(ST) 54 Andhra Pradesh Shri K. Ravi Sankar Commissioner(ST) Policy 55 Arunachal Pradesh Shri Lobsang Tsering 99 56 Arunachal Pradesh Shri Tapas Dutta 57 Arunachal Pradesh Shri N....
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....xation Department Principal Secretary (ST&E) Commissioner State Taxes and Excise Additional Commissioner State Taxes and Excise Principal Secretary, Finance Department 89 Jammu and Kashmir Dr. Rashmi Singh Commissioner, State Taxes 90 90 Jharkhand Ms. Vipra Bhal Secretary, Commercial Taxes Commissioner, Commercial 91 Jharkhand Shri Santosh Kumar Vatsa Taxes 22 92 Jharkhand Shri Brajesh Kumar Assistant Commissioner of State Taxes 93 Commissioner Commercial 93 Karnataka Ms. C. Shikha Tax 24 94 Karnataka Dr. Ravi Prasad Additional Commissioner CT 95 55 Kerala 96 96 Shri Ajit Patil Commissioner, State GST Department Kerala Shri Abraham Renn S Additional Commissioner-1 97 Madhya Pradesh Smt. Deepali Rastogi Page 31 of 49 Principal Secretary, Commercial Tax Department CHAIRMAN'S INITIALS MINUTE BOOK 98 Madhya Pradesh Shri Lokesh Kumar Jatav 99 99 Madhya Pradesh Shri Manoj Kumar Choubey Commissioner, Commercial Tax Additional Commissioner, Commercial Tax 100 Madhya Pradesh Shri Harish Jain Commercial Tax Officer 101 Maharashtra Shri Nitin Kareer Additional Chief Secretary (Finance) 102 Maharashtra Ms Shaila....
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....s Secretary, Commercial Taxes and Registration Chief Secretary and Special Chief Secretary (CT & Excise) Special Chief Secretary Finance Additional Commissioner State Tax 137 Telangana Ms. K Rupa Sowmya Deputy Commissioner State Tax 138 Tripura Ms. Rakhi Biswas Chief Commissioner of State Tax 139 Tripura Shri Ashin Barman GST Nodal Officer 140 Uttarakhand Dr. Ahmad Iqbal Commissioner of State Tax 141 Uttarakhand Shri Anil Singh Additional Commissioner 142 Uttarakhand Shri Amit Gupta Additional Commissioner 143 Uttarakhand Shri Anurag Mishra Joint Commissioner 144 Uttarakhand Shrji Ranjit Singh Assistant Commissioner 145 Uttar Pradesh Shri Nitin Ramesh Gokarn Additional Chief Secretary, State Tax 146 Uttar Pradesh Commissioner, State Tax Ms. Ministhy S 147 Uttar Pradesh Shri Harilal Prajapati Joint Commissioner(GST) Page 34 of 49 Shipra 3 Shipra MINUTE BOOK 148 Uttar Pradesh Shri Paritosh Kumar Mishra Deputy Commissioner, State Tax 149 Uttar Pradesh Shri Amit Pandey PA to Honourable Minister 150 West Bengal Dr. Manoj Pant Additional Chief Secretary, Finance Department 151 West Bengal Shri Khalid Aizaz Anw....
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....ne (01) Compensation Tax tion to (No. 03/2023) Cess (rate) (Compensa Notification issued States) Act. Description/Remarks Notifications to implement various decisions of GST Council taken in its 50th meeting 2017 Circulars Eight (08) Circulars issued (No. 192/04/2023 to i. 199/11/2023 dated 17.07.2023) 11. Circulars have been issued to implement various decisions of GST Council taken in 50th meeting. These circulars are: iii. iv. V. vi. Clarification on charging of interest under section 50(3) of the CGST Act, 2017, in cases of wrong availment of IGST credit and reversal thereof Clarification to deal with difference in Input Tax Credit (ITC) availed in FORM GSTR-3B as compared to that detailed in FORM GSTR-2A for the period 01.04.2019 to 31.12.2021 Clarification on TCS liability under Sec 52 of the CGST Act, 2017 in case of multiple E-commerce Operators in one transaction Clarification on availability of ITC in respect of warranty replacement of parts and repair services during warranty period Clarification on taxability of share capital held in subsidiary company by the parent company Clarification on refund-related issues vii. Clarification o....
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....of notifications for online gaming/casinos, etc. (3/8) [Vol 1- Pg 17-23] Major Amendments in CGST Act/ IGST Act 1. Amendment in Entry 6 of Schedule III of CGST Act to clarify taxability of actionable claims in casinos, horse racing and online gaming and insertion of related definitions (Contd.): S.No. 3. Section of CGST Act Section 2(80B) 4. Section 2(80A) Description Insertion of clause (80B) in section 2 of CGST Act for defining "online money gaming" so as to mean online gaming in which players pay or deposit money or money's worth in expectation of winning money or money's worth in any event, including game, scheme, competition or any other activity or process, irrespective of chance or skill, and irrespective of whether permissible by Law or not. Insertion of clause (80A) in section 2 of CGST Act for defining "online gaming" so as to mean offering of a game on the internet or an electronic network and including online money gaming Page 39 of 49 CHAIRMAN'S INITIALS MINUTE BOOK Agenda 2: Amendments in CGST Act 2017, IGST Act 2017 & CGST Rules and amendment/issuance of notifications for online gaming/casinos, etc. (4/8) [Vol 1- Pg 17-23] Major Am....
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.... in the said meeting, as given below: â– Value of supply in case of online gaming Rule 31B. Notwithstanding anything contained in this chapter, the value of supply of online gaming (including of supply of actionable claims involved in online money gaming) shall be the total amount paid or payable to or deposited with the supplier by way of money or money's worth, including virtual digital assets. by or on behalf of the player. Agenda 2: Amendments in CGST Act 2017, IGST Act 2017 & CGST Rules and amendment/ issuance of notifications for online gaming/casinos, etc. (7/8) [Vol 1- Pg 17-23] Value of supply of actionable claims in case of casino Rule 31C. Notwithstanding anything contained in this chapter, the value of supply of actionable claims in casino shall be the total amount paid or payable by or on behalf of the player- (i) for purchase of the tokens, chips, coins or tickets, by whatever name called, for use in casino; or (ii) for participating in any event, including game, scheme, competition or any other activity or process, in the casino, in cases where the token, chips, coins or tickets, by whatever name called, are not required. Explanation: For the....
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.... blocking the ITC on account of tax paid by business entities for their employees. >It was recommended that the same may be examined by the Law Committee for clarifying through a Circular, if necessary. Page 42 of 49 Shipra Shipra MINUTE BOOK Issue of treatment of refund/return of money to the players: Proposal: ■Insertion of proviso after proposed rule 31B: Provided that any amount returned or refunded by the supplier to the player for any reasons whatsoever, including player not using the amount paid or deposited with the supplier for participating in any event, shall not be deductible from the value of supply of online money gaming. ■Insertion of proviso after proposed rule 31C: Provided that any amount returned or refunded by the casino to the payer on return of token, coins, chips, or tickets, as the case may be, or otherwise, shall not be deductible from the value of the supply of actionable claims in casino. THANK YOU Page 43 of 49 பெ CHAIRMAN'S INITIALS MINUTE BOOK Section 2(80A) CGST Act Rationale for amendment Proposal Suggested formulation The term "online insertion of clause Section 2 gaming" needs to (80A) for def....
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....shall be deemed to be a supplier of such actionable claims, whether such actionable claims are supplied by him or through him and whether consideration in money or money's worth, including virtual digital assets, for supply of such actionable claims is paid or conveyed to him or through him or placed at his disposal in any manner, and all the provisions of this Act shall apply to such supplier of specified actionable claims as if he is the supplier liable to pay the tax in relation to the supply of such actionable claims. Page 45 of 49 CHAIRMAN'S INITIALS MINUTE BOOK Section 2(117A) CGST Act Rationale for ain endi ent Proposal Suggested formulation The term "virtual insertion of clause Section 2 digital asset (117A) for defining (117A) "virtual digital asset" shall digital have the same meaning as assigned to the asset in the CGST it in section 2(47A) of Income Tax Act. Act, 1961 (43 of 1961). needs to be "virtual defined in CGST Act. CHAIRMAN'S INITIALS Section 24 CGST Act Rationale for ain endi ent Proposal Section 24 provides for insertion compulsory registration clause in certain cases. It is for proposed that a person making supplying onli....
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.... Proposal Suggested formulation Sub-section (1) of section 5 provides for levy proviso to sub-section Section 5. Levy and collection.- enable of integrated tax on all inter-State supplies of (1) needs to be goods or services or both and for collection of amended to the same in the manner as may be prescribed. the government to notify certain goods However, the proviso to sub-section (1) of for whom the said section 5 provides that the integrated tax on proviso may not be goods imported into India shall be levied and applicable for levy collected in accordance with the provisions and collection of of Customs Tariff Act, 1975 at the point when integrated tax and in the duties of customs are levied on the said whose goods under section 12 of Customs Act, 1962. integrated tax shall be levied and collected the manner case, In case of intangible goods, it may not be in possible to levy and collect integrated tax on specified in section imports in the manner as provided in the said 5 (1) only. proviso, as the goods may not be physically crossing customs frontiers. Accordingly, there may be a need to amend the said proviso so as to enable the government to notify ce....