Infopark Kochi commended for ‘excellent performance' in GST payment
The letter of appreciation, awarded by the central government to taxpayers with an excellent compliance record, was instituted in 2021 on the fourth anniversary of GST implementation in the country, said a statement issued by the Infopark authorities.
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Business Standard
10 minutes ago
- Business Standard
FM Sitharaman briefs GST GoMs on need for sweeping tax reforms
Finance Minister Nirmala Sitharaman on Wednesday presented to GoMs from states her government's plans for sweeping reforms in the GST regime that involves slashing tax rates and easing compliance burden for businesses. The GoMs on rate rationalisation, insurance taxation and compensation cess will over two days deliberate on the Centre's 'next-gen' GST reforms under which tax will be levied at 5 and 18 per cent rates. A special 40 per cent rate has been proposed on 5-7 items, including sin goods. GST is currently levied at 5, 12, 18 and 28 per cent. While food and essential items are either at nil or 5 per cent rate, luxury and demerit goods are in 28 per cent slab, with a cess on top of it. The finance minister's address to the GoMs was for about 20 minutes during which she elaborated on the Centre's proposal, a source said. She explained the necessity for GST reforms to the states, the source added. The group of ministers (GoM) on compensation cess was set up to decide on the future of compensation cess post the loan repayment period. Besides, the GoM on insurance was deliberating on reducing tax rates on health and life insurance premium. The rate rationalisation GoM was mandated to suggest changes in slabs and rates and also remove duty inversion faced by certain sectors. The GoM on GST rate rationalisation is scheduled to meet again on August 21. As per an SBI Research report, the proposal, if implemented, could result in revenue loss of about Rs 85,000 crore a year. For the current fiscal, the loss to revenue is estimated at Rs 45,000 crore assuming the new tax rates are implemented from October 1. The Centre's proposal once approved by the GoMs will be placed before the GST Council, comprising ministers from Centre and all states, in its meeting next month. Prime Minister Narendra Modi has announced rollout of the GST reforms by Diwali. The SBI Research report estimated that the effective weighted average GST rate came down from 14.4 per cent at the time of inception to 11.6 per cent in September 2019. Given the current rationalisation of rates, the effective weighted average GST rate may be 9.5 per cent.
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Business Standard
40 minutes ago
- Business Standard
Real-money gaming dealt a losing hand as crackdown follows ₹20,000 cr blow
Mounting social concerns and an estimated ₹20,000 crore loss by nearly 450 million people due to frauds in real-money gaming (RMG) have pushed the Centre to impose a blanket ban on the sector. The decision comes amid alarm over opaque algorithms, user addiction, and widespread financial distress linked to games such as rummy, poker, and fantasy sports. The ban not only ends the long-standing debate over whether skill-based or chance-based games can operate in India but also overrides the patchwork of state-level rules on regulating or prohibiting the sector. Experts and industry players warn that the move could backfire by driving users towards unregulated offshore betting platforms. 'Government needs to reconsider and take a more calibrated stance, as prohibition has never worked. This Bill will bring back the satta market with a vengeance. Blanket bans drive users to unregulated platforms rather than protecting them. Instead of reducing harm, prohibitions create black markets that are harder to regulate and far riskier for users,' said Abhay Raj Mishra, president and national convenor of Public Response Against Helplessness & Action for Addressal (PRAHAR). PRAHAR's July 2024 survey of 2,500 gamers in Telangana, where RMG has been banned for eight years, found more than 94 per cent of players still accessing offshore or illicit apps through virtual private networks, Telegram groups, or sideloaded platforms. Industry executives also flagged the dominance of offshore operators, who already control nearly 80 per cent of the RMG market and run operations from tax havens such as Malta, Curaçao, and the British Virgin Islands. 'We continued to absorb high tax costs to keep users engaged. But if costs are passed on, users will simply migrate to untaxed offshore platforms,' said one senior executive. The ban comes even as the sector was reeling under a 28 per cent goods and services tax (GST) imposed in October 2023. More than 400 companies employ 200,000 people in the sector, estimates show. Major players include Dream11, Games24x7, Junglee Games, MPL, Zupee, Gameskraft, Head Digital Works, and Nazara Technologies. The decision has jolted the industry, which until recently was preparing for the impact of a steeper tax rate on margins. 'What has surprised the industry is that the Bill has been tabled without any consultation. We were not aware of this Bill until Tuesday,' said another senior executive. Founders and executives told Business Standard they were questioning the Centre's intent behind a blanket prohibition, especially after years of contributing through taxes, compliances, and outreach. They pointed out that the move came just days after rumours of a higher 40 per cent goods and services tax (GST) slab, categorising gaming as a 'sin' commodity — something they had already deemed unsustainable. 'Why was there revised GST chatter when the sector was supposed to be killed?' asked the founder of an RMG company. A joint report by the US-India Strategic Partnership Forum, the Interactive Entertainment & Innovation Council, and WinZO said the Indian exchequer loses $2.5 billion annually in tax revenues due to user migration to offshore companies. 'From an economic perspective, the prohibition is likely to hurt an industry that contributes heavily to GST collections and employment, while simultaneously driving users to offshore, unregulated platforms,' said Navod Prasannan, partner, King Stubb & Kasiva, Advocates & Attorneys. Between 2022 and 2024, the Ministry of Electronics and Information Technology issued blocking directions to 692 gambling and betting websites and apps. 'We acknowledge the government's decision to ban RMG and respect that this step has been taken after careful consideration of the social and regulatory concerns associated with the sector. As responsible stakeholders, we recognise the government's priority to safeguard consumer interests, prevent harm, and ensure that innovation aligns with national well-being,' said Shweta Rajpal Kohli, president and chief executive officer (CEO), Startup Policy Forum. Casual games level up? The Bill proposes recognition for e-sports where games do not involve wagering and rely on factors such as mental agility or strategic thinking. Currently, categories such as casual, midcore, or AAA-rated games depend on advertising or in-app purchases for revenue. A void in the RMG space may steer users towards e-sports, with the sector welcoming the Centre's decision. 'I welcome the Centre's decision to prohibit RMG and establish a strong regulatory framework. Too many young lives were being lost to addiction and debt. This decisive step safeguards our youth while unlocking the future of Indian gaming, driven by original intellectual property (IP), creativity, and Make in India games,' said Vishal Gondal, cofounder of nCore Games. Ecosystem participants added that the move is expected to drive stronger IP development in the country. 'We applaud this decision, as it allows us to focus on the real concerns as a business — monetisation, retention, and most importantly, building great IP for India and the world, rather than having to explain to our audiences what we are to begin with,' said Sumit Batheja, CEO and cofounder of Ginger Games.
Time of India
an hour ago
- Time of India
As many as 45 cr people lose about Rs 20,000 cr annually from real-money gaming: Govt sources
NEW DELHI: Much against the arguments spelt out by gaming companies against the ban on real-money gaming, Govt estimates that around 45 crore people lose close to Rs 20,000 crore every year in online real-money gaming, according to data provided by an official source on Wednesday. Tired of too many ads? go ad free now The source said the govt believes that online real-money gaming is turning into a 'major problem for the society', and thus it decided to opt for revenue loss in preference to people's welfare. "There is a rough estimate that 45 crore people lose money every year. The total impact of the loss is estimated to be tentatively around Rs 20,000 crore," the source said, just as the Govt tabled the "Promotion and Regulation of Online Gaming Bill 2025" in the Lok Sabha. The Bill, which was passed by the Lok Sabha, proposes to promote eSports and online social gaming while banning money gaming in any form. "Online gaming involving money has become a major problem for society. Every Parliamentarian has raised concerns about its ill effects. Between revenue from one-third of the industry segment and society welfare, the govt has chosen welfare of society," the source said. According to the source, actions against entities involved in money gaming under the bill will be mainly taken by state govts. The bill proposes that any person offering an online money gaming service in violation of the stipulated provisions will face imprisonment of up to three years or a fine that may extend to Rs 1 crore or both. The provisions also stipulate imprisonment of up to two years and or a fine of up to Rs 50 lakh, or both, for those indulging in advertisements in contravention of rules. Several online real-money gaming platforms 'masquerade as game of skills" entities to differentiate themselves from gambling or betting, the source said. Tired of too many ads? go ad free now "Those who play the games are victims. They will not be punished as per the bill, but there will be action on those who provide real-money gaming platforms, facilitate transaction services, etc," the source said. On the other hand, the bill seeks to promote eSports and online social games, which are a part of the creative economy. "There will be a budget for it, schemes and authority for their promotion. They are two-thirds of the industry. It will create job opportunities for the online gaming industry," the source said. Govt has been making efforts for the last three-and-a-half years, which were being bypassed by the real-money gaming players, the source added. 'The govt tried to check it through GST, but it was being bypassed. There was a proposal for a regulatory body, but it was impacted by a conflict of interest. The provisions under the bill were taken after several complaints were received from the public and their representatives," the source said.
