Latest news with #IGSTAct
Time of India
3 days ago
- Business
- Time of India
Infosys gets relief as DGGI closes Rs 32,403 crore GST notice
Infosys , India's second-largest IT services firm, has received a closure in the goods and services tax (GST) demand notice for over Rs 30,000 crore. Infosys said it had received communication from the Directorate General of GST Intelligence (DGGI) 'closing' the pre-show cause notice proceedings for the financial years 2018–19 to 2021–22. 'With the receipt of today's communication from DGGI, this matter stands closed, the Bengaluru IT major said in a regulatory filing late evening on Friday. The closure report comes after the Karnataka State GST authorities in July last year had sent a Rs. 32,403 crore notice for non-payment of GST under the reverse-charge mechanism for services imported from its foreign branches during the period spanning July 2017 to March 2022. This amounted to 85% of its revenue for the quarter ended June 30 in FY25. Live Events In July and August 2024, Infosys said it had received and responded to the notice issued by DGGI. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories After the notice, the NR Narayana Murthy-founded company had said it paid all its dues and is in compliance with central and state regulations. In a separate regulatory filing on Friday to the NSE, the company said: 'It may be noted that the Company had received and responded to a pre-show cause notice issued by DGGI for the period July 2017 to March 2022 on the issue of non-payment of IGST under Reverse Charge Mechanism.' "The Company had on 3 August 2024 received a communication from DGGI closing the pre-show cause notice proceedings for the financial year 2017–18,' the company further said in the Friday filing. In the notice last year, the DGGI had stated that as the company creates overseas branches to service clients as part of its agreement with the clients, those branches and the company are each treated as 'distinct persons' under the IGST Act. "Thus, in lieu of receipt of supplies from overseas branch offices, the company has paid consideration to the branch offices in the form of overseas branch expense. Hence M/s Infosys Ltd Bengaluru is liable to pay GST under the reverse charge mechanism on supplies received from branches located outside India,' said the notice sent last year.
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Business Standard
14-05-2025
- Business
- Business Standard
Gameskraft to pause Pocket52 poker operations from May 30 for review
Skill-based online gaming company Gameskraft will pause operations of its online poker platform Pocket52 starting May 30, as the company plans to reassess its long-term strategy in the segment. The Bengaluru-based company is calling this move a 'strategic pause'. The poker platform's 'add cash' feature will be discontinued on May 22, with the application remaining accessible until July 2025. 'All relevant communications are being sent to the players and will continue to be sent as the process progresses,' the company said in a statement. Users of the platform will be able to withdraw their remaining funds, and the process will be communicated to all players, according to the company. It added that the operational pause will not affect the company's headcount. 'While Pocket52 saw encouraging engagement, the company has recognised the need for deeper momentum and a more focused strategy to meaningfully scale and deliver a differentiated experience to players. Staying true to this commitment, Gameskraft has announced a strategic pause in the operations of its poker platform, Pocket52, as part of a broader plan to reassess and reimagine its long-term approach to the category,' the company said. The move comes at a time when online gaming firms are under pressure from the 28 per cent goods and services tax (GST) regime. The GST Council in 2023 decided to impose a flat 28 per cent tax on the face value of online gaming, casinos and horse racing, and accordingly amended the GST laws (the CGST Act and IGST Act). The new rules came into effect on October 1, 2023. The amendments specified that GST would be levied on entry-level bets on online gaming platforms, rather than on amounts paid by players in each game from their winnings. Online gaming companies challenged the amendment, but the Supreme Court in 2023 refused to grant interim relief against GST demand notices issued to them. The court agreed to examine the legality of the government's decision to impose 28 per cent GST retrospectively on the full value of bets placed, rather than on the gross gaming revenue. Gaming firms have argued that the 28 per cent tax should apply only from October 1, 2023. The government, however, has contended that the October 1 revision merely clarified an existing law, and that the tax demand was not retrospective.
Time of India
10-05-2025
- Business
- Time of India
Uttarakhand HC voids state GST orders after rule deletion
Dehradun: Uttarakhand high court set aside orders passed by the state GST department, ruling that no action could be taken under Rule 96(10) of the CGST Rules, 2017, after its omission on Oct 8, 2024, as there was no saving clause allowing for pending proceedings to continue. A division bench comprising chief justice G Narendar and justice Alok Mahra passed the order while disposing of a case filed by M/s Sri Sai Vishwas Polymers, a partnership firm. The petitioner challenged the validity of Rule 96(10), calling it ultra vires to section 16 of the IGST Act, 2017, read with section 54 of the CGST Act, 2017. The firm, which manufactures gold bars and jewellery under Chapter 71 of the Central Excise Tariff Act, 1985, was audited by officers from the state goods and services tax department. The department alleged the assessee had wrongly claimed a refund of Rs 1,05,25,755 under IGST. Following the audit, the department issued a show cause notice and later confirmed the demand. The assessee challenged the proceedings, arguing that they were based on an alleged violation of Rule 96(10), which had already been omitted from the CGST Rules from Oct 8, 2024. It contended that no action could be taken under a rule that no longer existed in the statute. In response, the department said that the show cause notice was issued while the rule was still in force and that the omission would only operate prospectively. Hence, proceedings initiated before the rule's deletion should be allowed to continue. The bench noted that the Kerala high court had already declared the rule ultra vires in the case of Sance Laboratories Pvt Ltd vs Union of India. Following this, the rule was deleted through a notification in Oct 2024. The court said it would be redundant to again declare it ultra vires to section 16 of the IGST Act. The bench concluded that since the rule had been unconditionally omitted without a saving clause, all actions based on it must cease from the date of its deletion. It allowed the petition and set aside the state GST department's order issued on Feb 3 this year.
Business Standard
07-05-2025
- Business
- Business Standard
Online gaming firms oppose retrospective 28% GST, not the levy itself
The gaming industry is not opposed to a prospective levy of 28 per cent Goods and Services Tax (GST) on the full face value of entry amounts under the current framework, but it is against the move to apply the tax retrospectively, online gaming companies told the Supreme Court on Wednesday. The GST Council in 2023 decided to impose a flat 28 per cent tax on the face value of online gaming, casinos and horse racing, and accordingly amended the GST laws (CGST Act and IGST Act). The new rule came into effect from October 1, 2023. The amendments specified that GST would be levied on entry-level bets on online gaming platforms, and not on amounts paid by players in each game from their winnings. Online gaming companies had challenged the amendment, but the apex court in 2023 refused to grant interim relief against GST demand notices issued to them. The court had then agreed to consider the legality of the government's decision to impose 28 per cent GST retrospectively on the full value of bets placed, rather than on the gross gaming revenue. Gaming firms have argued that the 28 per cent tax should be applicable only from October 1, 2023. The government, however, contended that the October 1 revision merely clarified a law already in force, and that the tax demand was not backdated. Advocate Abhishek A Rastogi, appearing for online poker platforms, told the court that the core issue is whether such a retrospective tax imposition is legally valid and constitutionally justifiable. 'The tax assessment has been erroneously computed on the total amount 'churned'—that is, the gross transaction volume passing through the platform—rather than the actual 'pooled' amount, which constitutes the real monetary consideration or stake pooled by players,' he argued. 'The distinction is critical: the churned amount may include internal platform movements or virtual transfers that do not reflect real income or revenue, thereby inflating the tax liability disproportionately,' he added. The bench is expected to continue hearing arguments through the week. On Tuesday, the Centre reiterated its position that gambling, whether based on skill or chance, remains gambling and is therefore liable to be taxed accordingly.
