Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

In its next meeting, slated for 9th September, the GST (Goods and Services Tax) Council may decide over imposing an 18% charge on <keyword id="20157806" type="General" weightage="20" keywordseo="payment-aggregators" source="keywords">payment aggregators</keyword> (PAs) like <keyword id="20290089" type="General" weightage="20" keywordseo="Razorpay" source="keywords">RazorPay</keyword>, Stripe, PayU, Pine Labs, and more. Reportedly, these charges will be levied on small value transactions of up to Rs 2,000, which are made via <keyword id="22719132" type="General" weightage="20" keywordseo="debit-and-credit-cards" source="keywords">debit and credit cards</keyword>. Until now, all payment aggregators were exempt from GST on all transactions up to Rs 2,000. We decode what it means for you, and how it will impact your pockets. What's happening? The <keyword id="22666613" type="General" weightage="20" keywordseo="fitment-committee" source="keywords">fitment committee</keyword>, which is made up of revenue officials from both center and states, is considering levying an 18% GST on payment aggregators. This is because officials feel that PAs are mere facilitators and intermediaries for card-based transactions, unlike banks, and thus, should be brought under GST purview. At present, they are exempt on paying GST on transaction of value less than Rs 2,000. But, if the proposal goes through in the 54th <keyword id="19994390" type="General" weightage="100" keywordseo="GST-Council" source="keywords">GST Council</keyword> meeting, every transaction you make through your credit or debit cards going ahead via such PAs will become costlier. Who are payment aggregators? PAs are essentially third-party service providers that let customers pay, and allow businesses to collect payments made via UPI, credit/debit cards or more. They are the interface between the customers and the merchants, allowing customers to opt for multiple, secure payment options, and also letting merchants manage and track fund collections and refunds. For their services, PAs levy a payment gateway fee, which ranges between 0.5% to 2% for each transaction. Post demonetisation in 2016, when currency notes of Rs 500 and Rs 1,000 were discontinued with immediate effect, the government had waived off taxes on credit and debit card transactions of up to Rs 2,000, in order to boost digital payments. If GST is levied, PAs are likely to pass on this cost to merchants. Will UPI be affected? No. Currently, UPI does not currently have a MDR, or merchant discount rate. UPI will continue to remain a lucrative option for PAs and merchants, especially for transactions under Rs 2,000, since they will not attract GST. PAs charge MDR to businesses for processing credit and debit card transactions on their behalf. What will change? The move is likely to affect small businesses the most, who thrive on multiple, low value transactions. Think of this. Say you make a payment of Rs 1,500 via your credit card on Razorpay. If the PA sets its fee at 1% of each transaction, the business will have to pay Rs 15 to the PA. But now, with the potential additional 18% GST applicable, the business will have to pay Rs 2.7 more, or about Rs 17.7 to these PAs. This might not seem much at first, but compounded over multiple transactions, might snowball into a significant cost for small businesses.

GST Council mulling 18% GST on low value transactions made via RazorPay, PayPal and more. Here's how it will impact you

<keyword id="19983534" type="General" weightage="100" keywordseo="Hero-MotoCorp" source="keywords" meta.keywordsubtype="org" meta.entityname="Hero MotoCorp" meta.hostid="83" meta.entityid="Hero MotoCorp">Hero MotoCorp</keyword> on Sunday said it has received a <keyword id="19901479" type="General" weightage="20" keywordseo="demand-notice" source="keywords">demand notice</keyword> of over Rs 17 crore from <keyword id="22828708" type="General" weightage="20" keywordseo="Delhi-GST-authorities" source="keywords">Delhi GST authorities</keyword>. The company has received an order for disallowance of <keyword id="19980589" type="General" weightage="20" keywordseo="input-tax-credit" source="keywords">input tax credit</keyword> for FY 2019-20 from the Office of the <keyword id="20263022" type="General" weightage="20" keywordseo="gst-officer" source="keywords">GST Officer</keyword>, <keyword id="22830157" type="General" weightage="20" keywordseo="Government-of-NCT-of-Delhi" source="keywords" meta.keywordsubtype="org" meta.entityname="Government of NCT of Delhi" meta.hostid="83" meta.entityid="Government of NCT of Delhi">Government of NCT of Delhi</keyword>, the two-wheeler major said in a <keyword id="19954258" type="General" weightage="20" keywordseo="regulatory-filing" source="keywords">regulatory filing</keyword>. The company said the tax demand is for Rs 9,38,66,513, interest Rs 7,32,15,880 and penalty Rs 93,86,651 as per the notice. Based on the company's assessment, the tax demand is not maintainable in law, it added. The input tax credit disallowed by the office of the GST Officer, New Delhi, was rightfully claimed by the company as per the provisions of the GST law but disallowed on account of the supplier's non-compliance, which is not attributable to the company, <keyword id="7029" type="General" weightage="20" keywordseo="Hero" source="Orion">Hero</keyword> MotoCorp said. Accordingly, the company shall take appropriate steps, including filing an appeal, it added. There is no material impact on financials, operations or other activities of the company, Hero MotoCorp said.

Hero MotoCorp gets over Rs 17 crore tax notice from Delhi GST authorities

With just 2 days to go before finance minister Nirmala Sitharaman presents the union budget 2024, various sectors are abuzz with their expectations from the first full fledged budget to be presented under PM Modi's third consecutive term. Most experts anticipate the budget to focus heavily on boosting consumer demand and accelerating infrastructure development. In fact, president Murmu has already hinted that the budget will be historic, both in its scope and announcements. As such, what is it that the Indian insurance industry, driven by IRDA's vision of "Insurance for all by 2047" want from this budget? Lets find out <h2>Capture the <keyword id="21409017" type="General" weightage="20" keywordseo="annuity-market" source="keywords">annuity market</keyword> </h2>Subhrajit Mukhopadhyay, Executive Director, Edelweiss <keyword id="19936531" type="General" weightage="20" keywordseo="life-insurance" source="keywords">Life Insurance</keyword> anticipates that the upcoming budget should tackle the issue of how annuities are taxed. Currently, they are completely taxable in the hands of customers, which reduce its attractiveness, vis a vis other retirement planning options like NPS (National Pension System). According to a recent report by UNFPA, the population of number of individuals in the country who are aged 60 or more is set to double to around 346 million in the next 30 years. As such, it becomes all the more important to create awareness regarding retirement planning, and ensuring the aged have a secure, stable source of income in their twilight years, which is where annuities come in. "India’s vast ageing population underlines its burgeoning pension and annuity market. Annuity caters to the key dilemma of a pensioner, for a life-long pension at a steady, guaranteed rate and exposes the investors to a reinvestment rate risk especially in a volatile interest rate scenario. Annuities are the only solution, which provide complete protection from the perspective of living longer (i.e. outliving one’s corpus), by providing a regular flow of income throughout one’s lifetime, purchased in lieu of a single lump-sum amount. Currently, tax incentive is offered for people to accumulate corpus in NPS under Section 80CCD (1b ). A similar incentive may also be extended to annuities", noted Mukhopadhyay <h2>Separate sops for <keyword id="19894985" type="General" weightage="20" keywordseo="health-insurance" source="keywords">health insurance</keyword> premiums </h2>One of the most vocal demands of the insurance industry at the moment is to increase the tax deduction limit for premiums paid towards life and health insurance. At present, individuals aged below 60 can claim an annual deduction of up to Rs 25,000 towards health insurance premiums paid for self, spouse or children. The limit goes up to Rs 50,000 in case of senior citizens. Mr. Rakesh Goyal, Managing Director, Probusinsurance.com hopes that the budget will raise this limit to Rs 50,000 for self, spouse, and children, and Rs 1 lakh for senior citizens. Anup Rau Managing Director &amp; Chief Executive Officer of Future Generali India Insurance Company Limited, agrees to this. “Making insurance products affordable and accessible to masses will be crucial to ensure India achieves “Insurance for All by 2047” – a goal set by IRDAI - and this calls for certain <keyword id="20071222" type="General" weightage="20" keywordseo="tax-incentives" source="keywords">tax incentives</keyword>. The deduction limit on health insurance premium under Section 80D has remained unchanged for the past nine years despite the fact that there has been a significant rise in healthcare costs across the country. Interestingly, India, which surpasses South Asian peers with a medical inflation rate of 14%, last witnessed an enhancement in the deduction limit in 2015-16. Also, these benefits need to be extended to the new tax regime as well since increasing health <keyword id="20998941" type="General" weightage="100" keywordseo="insurance-penetration" source="keywords">insurance penetration</keyword> is critical", he adds. Goyal goes a step ahead, and advocates for creating a separate exemption limit for insurance premiums, in addition to the existing threshold of Rs 1,50,000. "Right now, Indians get a tax exemption of Rs 1.5 lakh every year, but it's crowded with various financial products. We would expect the limit to increase or to establish a separate exemption limit specifically for life insurance premiums. This move would help increase countrywide insurance penetration", says Goyal. Krishnan Ramachandran, Managing Director and Chief Executive Officer (MD&amp;CEO) of Niva Bupa Health Insurance also advocates for the 80D tax exemption to be linked to inflation and revised periodically. Also, per him, tax exemptions should also extend to dependent family members like siblings. Syed Meraj Naqvi,CEO &amp; Principal Officer, Riskbirbal Insurance Brokers also thinks on similar lines. "Adding a portion of medical insurance premiums for tax relief alongside the current 1,50,000 deduction limit would not only ease financial burdens but also encourage the younger generation to embrace saving habits. It’s about nurturing a mindset of financial responsibility while ensuring adequate healthcare coverage for all", he notes. Parimal Heda, Chief Investment Officer, Go Digit General Insurance believes that a good way to increase insurance coverage amongst young individuals is by offering a significant tax discount. "This could also be considered particularly for first-time health insurance buyers, especially youngsters. A tax exemption of 200% of the premium amount can be considered under chapter VIA. This can later be reduced in a phased manner of four years to make the same at par with the existing tax benefit provided under Section 80D", Heda observes. <h2>Don't overlook home, vehicle insurance </h2>Even though motor insurance, which makes up for around 50% of the non-life insurance industry (sans health) grew at around 12.9% in FY24, touching Rs 91,781.3 crore, over 50% of vehicles don’t even have a third-party (TP) motor insurance. To counter this, Heda suggests a one-time tax exemption can be offered to people to renew their lapsed TP policy. Additionally, given the increasing frequency of natural calamities adversely impacting human property, it is necessary to increase home insurance penetration to protect homeowners. Per Heda, the government, with the help of RERA can make home insurance mandatory for new homeowners, for which a tax deduction of up to Rs 25,000 can also be considered on home insurance premiums. However, a word of advice. Do not wait for tax breaks, or budget announcements to buy a life, or health insurance in case you already don't have one. Get one right away!

Budget 2024: Three things the insurance sector want from FM Sitharaman this budget.

How are the new GST changes going to impact you?

The Federation of Automobile Dealers Associations (<keyword id="354719" type="General" weightage="80" keywordseo="fada" source="Orion">FADA</keyword>), the leading body of automobile retail in India, on Thursday submitted a critical representation to the Goods and Services Tax (<keyword id="6354679" type="General" weightage="100" keywordseo="gst" source="Orion">GST</keyword>) Council, urging an immediate reduction in the GST rate on two-wheelers from the current 28 per cent to 18 per cent. This timely and decisive intervention is aimed at making two-wheelers more affordable, reviving demand and reinvigorating an industry that has seen a significant slump in sales over the past few years, according to a statement from FADA. FADA President Manish Raj Singhania affirmed, "The two-wheeler industry is at a critical juncture, grappling with unprecedented challenges such as rising inflation, stringent emission norms, and the post-COVID-19 effects in Bharat of India." He said this is the opportune moment for the GST Council to reduce the GST rate on two-wheelers, making them more accessible for the common man, thereby providing the much-needed boost to the industry, generating employment opportunities and fostering India's overall economic growth. FADA's compelling appeal has been forwarded to Finance Minister Nirmala Sitharaman, chair of the GST Council, all GST Council members; the Ministry of Heavy Industries, which supervises the automobile sector and the Ministry of Road Transport and Highways. This action underscores the urgency and significance of the issue, it added. FADA said over the past few years, the prices of various two-wheelers have risen significantly, impacting their affordability for consumers across India. This surge in prices can be attributed to multiple factors, including the rising cost of raw materials, stricter emission norms and higher taxes and levies, FADA said, adding that for instance, the price of the popular -- Honda Activa -- has escalated from Rs 52,000 in 2016 to Rs 88,000 in 2023. Similarly, the Bajaj Pulsar has witnessed a substantial increase from Rs 72,000 in 2016 to Rs 1,50,000 in 2023. The Hero Splendor and <keyword id="1871753" type="General" weightage="50" keywordseo="tvs-jupiter" source="Orion">TVS Jupiter</keyword> have also experienced considerable price hikes over the same period, with their prices soaring from Rs 46,000 to Rs 74,801 and Rs 49,000 to Rs 88,498, respectively. The continuous rise in two-wheeler prices has consequently led to a decline in sales, emphasising the pressing need for intervention and GST rate reduction to restore the industry's growth trajectory, according to the statement. In 2016, two-wheelers accounted for 78 per cent of the total automobile sales in India. However, due to continuous price increases since 2020, this contribution has fallen to 72 per cent in FY23, underlining the impact of the steep price hike. FADA believes that a reduction in the GST rate will address several critical issues facing the industry, including rural distress, the transition from BS-4 to BS-6 emission norms and the sharp increase in two-wheeler prices. Lowering the GST rate will enhance the competitiveness of two-wheelers compared to other transportation modes, thereby increasing sales and revenue for the industry. The association also said two-wheelers play a pivotal role in providing affordable mobility to a large segment of India's population, especially in rural areas where public transportation is sparse. FADA also asserted that two-wheelers, being essential for millions, should not be categorised as sin goods or luxury items for GST taxation purposes. SEE ALSO: <a href="https://www.businessinsider.in/tech/news/apple-app-store-prevented-over-2-billion-in-fraudulent-transactions-last-year-banned-282-million-user-accounts/articleshow/100322718.cms">Apple App Store prevented over $2 billion in fraudulent transactions last year, banned 282 million user accounts</a> <a href="https://www.businessinsider.in/business/auto/news/electric-scooters-and-bikes-may-get-costlier-as-government-looks-to-revamp-the-fame-ii-scheme/articleshow/100321089.cms">Electric two wheelers may get costlier as government looks to revamp the FAME-II scheme</a> <a href="https://www.businessinsider.in/tech/news/how-to-find-phone-numbers-registered-in-your-name-and-block-those-that-arent-yours/articleshow/100297548.cms">How to find phone numbers registered in your name and block those that aren’t yours</a>

Automobile dealers' association seeks GST cut on 2-wheelers from 28% to 18%

<ul><li>Entry-level passenger vehicle segment has fewer buyers, suggesting that customers at the bottom of the pyramid are still hesitant to upgrade from 2-wheelers to 4-wheelers </li><li>For the first time in eight months, passenger vehicles witnessed a Y-o-Y degrowth. </li><li>The 2-wheeler industry is facing challenges as the demand for entry-level vehicles decreases. </li><li><keyword id="354719" type="General" weightage="100" keywordseo="fada" source="Orion">FADA</keyword> has adopted a cautious stance for the month of May due to unfavourable weather conditions.</li></ul> The retail performance of vehicles in April marks a slow start to FY2024, with a 4% decline in total vehicle retails. Two-wheelers and passenger vehicles led the declines, according to data released by Federation of Automobile Dealers Associations of India. Despite a healthy year-on-year (Y-o-Y) growth of 57% in 3-wheelers and marginal growth of 1% and 2% in tractor and commercial vehicles respectively, 2-wheelers faced a setback, declining by 7%. In April, the passenger vehicle (PV) segment experienced a slowdown with a 1% Y-o-Y decline in retail sales, after achieving record sales in FY 2023. The decline was attributed to a high base from the previous year and the implementation of OBD 2A norms, which caused an increase in vehicle prices and prompted advanced purchases in March. OBD 2A refers to on-board diagnostics 2nd generation type A, which is a set of regulations implemented by the Indian government to reduce vehicular pollution. “Entry-level PVs have fewer buyers, suggesting that customers at the bottom of the pyramid are still hesitant to upgrade from 2-wheelers to 4-wheelers,” said <keyword id="14931734" type="General" weightage="50" keywordseo="manish-raj-singhania" source="Orion">Manish Raj Singhania</keyword>, president, FADA. 2-wheeler segment continues to struggle The 2-wheeler segment continues to struggle, down by 19% compared to pre-Covid April 2019, and contributing to a 12% decline in total vehicle sales. Unfavourable weather conditions, including untimely rains and hailstorms, caused crop damage in several states in April, aggravating farmer concerns and potentially impacting entry-level 2-wheeler and passenger car sales. “The 2-wheeler segment's continued low sales, with a 7% YoY decrease, can be attributed to limited supplies due to the OBD 2A shift, untimely rains, and pre-buying in March. Model mix availability, rural sentiment, and demand in the 2-wheeler motorcycle segment remain weak. The rural economy has yet to show significant progress,” said <keyword id="1114" type="General" weightage="50" keywordseo="singhania" source="Orion">Singhania</keyword>. Inclement weather conditions likely to impact May sales The 2-wheeler industry is facing challenges as the demand for entry-level vehicles decreases. FADA said it has requested the <keyword id="6355040" type="General" weightage="50" keywordseo="gst-council" source="Orion">GST Council</keyword> to consider reducing the <keyword id="6354679" type="General" weightage="50" keywordseo="gst" source="Orion">GST</keyword> on 2-wheelers from 28% to 18% to revive this important segment, which makes up 75% of total auto sales. However, there is hope that the upcoming wedding season in May will lead to a sales resurgence due to increased customer interest. Additionally, as electric vehicles (EVs) become more popular, customers are considering switching from internal combustion engines (ICE) to EVs, which may delay their purchasing decisions temporarily, FADA said. The demand for medium and heavy commercial vehicles (M&amp;HCV) in the commercial vehicle (CV) segment is growing rapidly, thanks to the active infrastructure development projects across the country. The segment's growth is also attributed to better supply of products from original equipment manufacturers (OEMs) and customers' willingness to adapt to changes in pricing. Concerns are being raised regarding the increasing inventory levels in the PV segment. FADA has requested original equipment manufacturers (OEMs) to re-evaluate their inventory and prioritise production and supply of products that are in demand to ensure a better alignment between market demand and available inventory. This move will benefit both customers and manufacturers alike. Although the market conditions are somewhat sluggish, and there is a shortage of chips, the upcoming marriage season in May is expected to provide a slight boost in sales for the current month. Unfavourable weather conditions, including untimely rains and hailstorms, are causing crop damage in multiple states. This is worsening the concerns for farmers and has the potential to impact sales of entry-level 2-wheelers and passenger cars. In light of these factors, FADA has adopted a cautious stance for the month of May. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/go-first-suspends-sale-of-tickets-till-may-15-dgca-asks-airline-to-process-refunds-for-passengers/articleshow/99982706.cms">Go First suspends sale of tickets till May 15; DGCA asks airline to process refunds for passengers</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/go-first-flight-cancellations-make-summer-travel-and-vacations-expensive/slidelist/99983101.cms">Go First flight cancellations make summer travel and vacations expensive</a>

Retail vehicle sales decline 4% in April, says FADA as it remains cautious about May

<ul><li>The <keyword id="6354679" type="General" weightage="20" keywordseo="gst" source="Orion">GST</keyword> Council has levied a 28% rate to casiones, <keyword id="149956" type="General" weightage="20" keywordseo="horse-racing" source="Orion">horse racing</keyword>, etc on the amount the gaming company earns from its users. </li><li>The GST Council has recommended removing the critical distinction between game of skill and <keyword id="10751675" type="General" weightage="20" keywordseo="game-of-chance" source="Orion">game of chance</keyword>. </li><li>The decision is expected to hit the <keyword id="6422069" type="General" weightage="20" keywordseo="online-gaming" source="Orion">online gaming</keyword> industry hard and the shares of listed players has taken a nosedive. </li></ul>The online gaming industry woke up expecting a bad day on Dalal Street after the 50th GST Council announced its decision to levy a 28% GST on online gaming, along with horse racing and <keyword id="71409" type="General" weightage="20" keywordseo="casinos" source="Orion">casinos</keyword>. As expected, shares of listed players like Nazara Tech and Delta Corp took a major hit with the latter nosediving 20%. The online gaming industry stakeholders have termed the 28% GST on the full value of gaming as "irrational and egregious", saying that the move is a self goal that will kill the skilled online gaming sector in the country. <cmsannotation type="cmsannotation" annotationid="But first, what is the dispute" comment="subhead" text="But first, what is the dispute">But first, what is the dispute</cmsannotation> The main debate has been about online gaming categorisation, whether it is a game of skill or a game of chance. “The Government is saying that if it is a game of chance, it will come under the category of betting, gambling, so there will be a GST of 28% on the gross value. The industry is saying that it is a game of skill and should be liable to18% GST, not on the gross value, but only on the commission component,” explains Pratik Jain, Partner, PwC India, a professional services firm. Roland Landers, CEO of the All India Gaming Federation, said that the decision ignores over 60 years of settled legal jurisprudence and lumps online skill gaming with gambling activities. "We believe this decision by the GST Council is unconstitutional, irrational, and egregious. This decision will wipe out the entire Indian gaming industry and lead to lakhs of job losses and the only people benefitting from this will be anti-national illegal offshore platforms," reads his statement. <cmsannotation type="cmsannotation" annotationid="The impact on the online gaming industry" comment="subhead" text="The impact on the online gaming industry">The impact on the online gaming industry</cmsannotation> Experts and gaming company owners agree that this is going to adversely impact the gaming industry in a major way. “It will be interesting to see the business impact for the online gaming sector considering that this sector has been touted to have significant growth potential,” says Shilpy Chaturvedi, Partner, Deloitte India, a professional services firm. Joy Bhattacharjya, Director-General, Federation of Indian <keyword id="34077" type="General" weightage="20" keywordseo="fantasy" source="Orion">Fantasy</keyword> Sports (FIFS), says that as pointed out by FIFS and many of its members on numerous occasions, change in valuation to tax on the total consideration will cause irreversible damage to the industry, loss of revenue to the exchequer and loss of employment for lakhs of skilled engineers. “The decision will have a chilling effect on the $2.5 billion of FDI already invested by investors and jeopardise potentially any further FDI in the sector. Further, this decision will shift users to illegal betting platforms leading to user risk and loss of revenue for the government,” says Bhattacharjya. Experts say that the higher tax burden will also put a blocker on India’s expanding gaming industry, and deter the new player from entering the industry. Industry insider, Mitesh Gangar, the co- founder and director of PlayerzPot, a fantasy gaming company, says that the move will corner the gaming industry in a big way. “The overall operations will not be feasible. The high tax burden will completely restrict the cash flow, limiting a company’s ability to invest in research, innovation, expansion or survival,” he said. The government on its part has said that the move isn’t targeting any particular industry. Finance Minister Nirmala Sitharaman said, “The decisions were intensive and were taken after consultation with all the members, including those representing states like Goa and Sikkim where casinos form a key part of the tourism sector."

Online gaming industry says 28% GST makes operations unfeasible

The gross GST revenue collections in August witnessed a 28% jump year-on-year basis, as they stood at ₹1,43,612 crore during the month. According to figures released by <keyword id="47209" type="General" weightage="80" keywordseo="finance-ministry" source="Orion">Finance Ministry</keyword> on Thursday, GST collections in August 2021 were ₹1,12,020 crore. Out of the total collections, CGST was ₹24,710 crore, SGST was ₹30,951 crore, <keyword id="6360947" type="General" weightage="80" keywordseo="igst" source="Orion">IGST</keyword> was ₹77,782 crore (including ₹42,067 crore collected on import of goods), while the cess stood at ₹10,168 crore (including ₹1,018 crore collected on import of goods). "The growth in GST revenue is a clear impact of various measures taken by the <keyword id="6355040" type="General" weightage="20" keywordseo="GST-council" source="Orion">GST Council</keyword> in the past to ensure better compliance. Better reporting coupled with economic recovery has been having positive impact on the GST revenues on a consistent basis," a Ministry statement said.

GST collections stood at ₹1,43,612 crore in August

<ul><li>The Indian government is reportedly all set to increase <keyword id="6354679" type="General" weightage="80" keywordseo="gst" source="Orion">GST</keyword> on online gaming to 28%, a proposal that could spell trouble for the industry and players alike. </li><li>The online gaming industry is expected to cross $5 billion valuation by 2025, but the taxman’s greed could kill the golden-egg laying hen. </li><li>Experts are worried about the impact this could have on the industry – both the players and the businesses, which are still in their early days. </li></ul>The Indian government is reportedly all set to tax casinos, online gaming and horse racing at the highest slab of GST – 28%. Looks like the taxman is intent on treating these recreational activities and skills on par with tobacco, cigarettes, <a href="https://www.businessinsider.in/cryptocurrency/news/28-gst-on-crypto-transactions-india-is-reportedly-mulling-another-tax-levy-next-week/articleshow/92407767.cms">cryptocurrencies</a> and luxury cars. Online betting, gambling, casinos and horse racing have long been treated ‘unfairly’ by the Indian taxman – while GST has been considerably moderate at 18% until now. Winnings and other income earned from these activities have been taxed at the highest rate of 30% without any deductions whatsoever. Now, a new <a href="https://economictimes.indiatimes.com/news/economy/policy/28-gst-likely-on-casinos-online-gaming-horse-races-on-gross-revenue/articleshow/92474293.cms?from=mdr">report</a> suggests that the government is mulling increasing the GST rate to 28% – the highest in effect currently. This will be applicable on compulsory food and beverages as well, driving up the costs for businesses and participants. <div type="Article" hostid="261" msid="92356710" title="INTERVIEW: The big picture on 5G, Big Tech-telco war with COAI’s Dr SP Kochhar" mstype="2" mssubtype="0"></div> <cmsannotation type="cmsannotation" annotationid="Fantasies are taxed too, and that too doubly" comment="subhead" text="Fantasies are taxed too, and that too doubly">Fantasies are taxed too, and that too doubly</cmsannotation> The government proposal says that GST will be charged on the gross revenue, not the net value added, which goes against both global tax ethics – as well as the very foundation of the GST regime, which intends to remove the undesirable double taxation effect. "Taxing online gaming, horse racing, and casinos at gross revenue instead of net value addition would be a departure from the global tax ethics," Rajat Mohan, senior partner, AMRG &amp; Associates told PTI. This could have an adverse impact on the entire industry. For instance, the online gaming sector which includes the likes of MPL, Zupee, Winzo and other startups, is expected to cross $5 billion in valuation by 2025, according to a <a href="https://www.ibef.org/blogs/india-s-nascent-gaming-industry-on-the-rise">IBEF report</a>. The government earned nearly ₹1,500 crore from fantasy sports in the form of taxes in FY21. A Deloitte report says that the combined industry contribution could cross a whopping ₹16,000 crore cumulatively over the next two years. And the taxman believes that he found a goose which lays golden eggs. <cmsannotation type="cmsannotation" annotationid="The costly game of confusion" comment="subhead" text="The costly game of confusion">The costly game of confusion</cmsannotation> The online gaming industry has been plagued by the ambiguous nature of government’s tax policies. The taxman has often been said to be confused about the nature of online games – whether those involve skills or are just gambling. It might be justified to tax gambling at the highest rate of tax, but experts believe that punishing games of skill in the same manner is unfair. To make matters worse, the government wants to raise the tax from 18% to 28%. <cmsannotation type="cmsannotation" annotationid="Mukesh Ambani, Rakesh Jhunjhunwala and more, to be affected" comment="subhead" text="Mukesh Ambani, Rakesh Jhunjhunwala and more, to be affected">Mukesh Ambani, <keyword id="6398943" type="General" weightage="80" keywordseo="rakesh-jhunjhunwala" source="Orion">Rakesh Jhunjhunwala</keyword> and more, to be affected</cmsannotation> This can also have an adverse impact on telcos, which are banking on online gaming as a new revenue stream as the industry seems to be entering a phase of stagnation. “Rather than being just the pipe, telcos like Jio (RIL owned) and Bharti are focusing on gaming as an incremental source of ad/subscription revenue. In fact, RIL believes that gaming in India will be bigger than music, movies and television shows put together,” said a report by Bank of America Securities. This could also impact <keyword id="201442" type="General" weightage="50" keywordseo="delta-corp" source="Orion">Delta Corp</keyword>, the only listed casino operator in the country which has seen its fortunes fade away, with even Rakesh Jhunjhunwala paring down his holdings in the company considerably. <div type="javascript" title="Custom" contenttype=""><cdata><![CDATA[]]></cdata></div> “This would be a distress the business model to a great extent as the touted super tax will have to be funded either by the platform, who do not make that kind of money in this business or would go on to reduce the prize pool size – effectively bringing down the interest in customer engagement,” Adarsh Somani, senior partner at ELP Law, told Business Insider India. This would wreak havoc on the gaming industry, and even if the government wants to reduce difficulties by offering a single – but higher – rate of tax, the valuation methodology will have to be made clear, Somani added. As things stand today, there is plenty of ambiguity that will have to be worked out by the government – even a small misstep could spell a lot of trouble for the gaming industry and its participants. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/auto-and-finance-stocks-can-bounce-back-even-if-the-market-crashes-in-july/articleshow/92436186.cms">Auto and finance stocks can bounce back even if the market crashes in July</a> <a href="https://www.businessinsider.in/finance/news/rbi-kept-the-rupee-exceptionally-stable-so-far-and-the-tide-could-turn-for-the-better-say-experts/articleshow/92414356.cms">RBI kept the rupee ‘exceptionally’ stable so far, and the tide could turn for the better say experts</a> <a href="https://www.businessinsider.in/business/telecom/news/interview-the-big-picture-on-5g-big-tech-telco-war-with-coais-dr-sp-kochhar/articleshow/92356710.cms">INTERVIEW: The big picture on 5G, Big Tech-telco war with COAI’s Dr SP Kochhar</a>

India is betting on casinos, online games and horse races to fill its coffers

New Delhi, Mar 13 () The GST Council on Saturday discussed the impact of coronavirus on the economy, Finance Minister Nirmala Sitharaman said. Briefing reporters after the 39th meeting of the GST Council, Sitharaman said the government is trying to make an assessment on the impact of coronavirus on the economy and is talking to the industry and the services sector. Meanwhile, Delhi Deputy Chief Minister Manish Sisodia said that the pandemic would lead to job losses and deficit in government revenue. "Corona is not only a health crisis. It's going to be most dangerous economic crisis world is going to face. The crisis would result in job losses at large scale &amp; revenue deficits in govt. I demanded GST council should discuss this and act in advance before the systems fail," he tweeted. Ratings agencies have lowered global growth forecasts citing subdued economic activity and consumption due to the deadly virus. Coronavirus, which has been declared a global pandemic by WHO has claimed over 5,000 lives across the world and infected over 1.20 lakh people. In India the number of coronavirus positive cases climbed to 84 with 2 deaths reported. Several states ordered closure of schools, colleges, public institutions and cinema halls. JD MRMR

GST Council discuss coronavirus impact on economy

<ul><li>A group of ministers is reportedly set to discuss a GST on cryptocurrency transactions in the country.</li><li>Decisions on GST are taken by the GST Council.</li><li>India levies 5%, 12%, 18% and 28% GST on goods and services sold in the country.</li></ul>After levying a 30% tax on capital gains from crypto transactions, and the upcoming 1% tax deduction at source (TDS), the Indian government may now be looking to levy its goods and services tax (GST) on such transactions as well. A ministerial panel is expected to meet next week to discuss the tax, according to a <a href="https://www.bloomberg.com/news/articles/2022-06-22/india-panel-said-to-weigh-sales-tax-on-cryptocurrency-next-week">report</a> by Bloomberg. The panel will comprise of finance ministers from central and state governments in the country, also known as the group of ministers (GoM). It will meet on two days, starting from June 28, in the Northern Indian state of Chandigarh. To be sure, the panel won’t be finalizing the tax during the meeting. Under Indian law, ministerial panels like this are formed in order to make recommendations to the GST Council, which takes final calls on this particular tax. For instance, earlier this month, a panel of ministers recommended that a 28% GST should be issued on online fantasy games — a decision that is pending with the council right now. <cmsannotation type="cmsannotation" annotationid="28% GST on crypto transactions?" comment="subhead" text="28% GST on crypto transactions?">28% <keyword id="13140539" type="General" weightage="20" keywordseo="gst-on-crypto" source="Orion">GST on crypto</keyword> transactions?</cmsannotation> India levies 5%, 12%, 18% and 28% GST on goods and services sold by companies in the country. The 28% slab is reserved for goods and services that are considered to be in the luxury segment. India also puts gambling under this slab, and is set to add fantasy gaming to it, raising concerns that crypto may be subject to the same tax. The tax was formulated long ago, but came into effect from 2017, and is meant to bring many of the country’s service-related taxes, including service tax and value added tax (VAT), under one umbrella. An additional tax on the industry, however, could be troublesome for crypto exchanges and traders in the country. In February this year, Finance Minister Nirmala Sitharaman announced a 30% tax on capital gains from cryptocurrency transactions in the country, during the Union Budget announcement. <cmsannotation type="cmsannotation" annotationid="India’s tax authorities clarify on crypto TDS" comment="subhead" text="India’s tax authorities clarify on crypto TDS">India’s tax authorities clarify on crypto TDS</cmsannotation> The country is also expected to levy a 1% TDS on such transactions from July 1, and the Central Board of Direct Taxes (CBDT) <a href="https://www.businessinsider.in/investment/news/india-crypto-tds-clarification-issued-by-[%E2%80%A6]ncies-and-virtual-digital-assets/articleshow/92405606.cms">issued clarifications on</a> the same yesterday. The taxes come at a time when the crypto industry is experiencing an extended bear phase. At the time of writing, top coins like Bitcoin, Ethereum, Cardano and others have dropped by over 70% from their all-time-highs. Additional taxes could affect the industry’s fortunes and impact exchanges’ trading volumes. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/cryptocurrency/news/tether-to-launch-tokens-pegged-to-the-british-pound-in-an-expansion-of-its-lineup-of-stablecoins/articleshow/92394242.cms">Tether to launch tokens pegged to the British pound in an expansion of its lineup of stablecoins</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/cryptocurrency/news/ftx-boss-sam-bankman-fried-has-bailed-out-struggling-crypto-lender-blockfi-with-a-250-million-loan/articleshow/92392418.cms">FTX boss Sam Bankman-Fried has bailed out struggling crypto lender BlockFi with a $250 million loan</a>

28% GST on crypto transactions? India is reportedly mulling another tax levy next week

Amid growing protest over the imposition of Goods and Services Tax (<keyword id="6354679" type="General" weightage="20" keywordseo="gst" source="Orion">GST</keyword>) on essential commodities, <keyword id="28504" type="General" weightage="80" keywordseo="kerala" source="Orion">Kerala</keyword> government on Tuesday said it does not intend to tax items sold by entities like <keyword id="783826" type="General" weightage="100" keywordseo="kudumbashree" source="Orion">Kudumbashree</keyword>, or small stores in 1 or 2kg packets. State Finance Minister K N <keyword id="255137" type="General" weightage="80" keywordseo="balagopal" source="Orion">Balagopal</keyword> told the Kerala Assembly that the decision might lead to issues with the central government but the state was not ready to compromise. "At any rate, in Kerala we don't intend to tax items which are sold by organisations like Kudumbashree or in small stores in 1 or 2 kg packets or in loose quantities. Even if this will lead to issues with the Centre," Balagopal told the Assembly. "We are not ready to compromise on this. We had already said this there." He said the state government has already written to the Centre regarding its stand. "Yesterday too, the CM wrote to them regarding these things. We don't intend to levy it on small-scale traders and small stores. There can be no argument on this," Balagopal added. Kerala government's Kudumbashree, a women self-help group, is considered one of the largest women empowerment projects in the country. It's engaged in ventures such as running of small-scale food processing units, and various others. Balagopal said the branded companies have to pay a tax of 5 per cent on packaged products, but if they mention in the packaging that they are not "claiming the brand" then it is not taxed. "So they (centre) have brought in the rule to catch such companies... but there is still some confusion prevailing over this," he added. Kerala Chief Minister Pinarayi <keyword id="6388414" type="General" weightage="80" keywordseo="vijayan" source="Orion">Vijayan</keyword> has sought an urgent intervention of Prime Minister Narendra Modi on the issue of the imposition of GST on essential commodities, arguing the move will severely affect the common people. Vijayan pointed out that many small shopkeepers and millers pre-pack and keep the items ready for sale so that the customers can readily purchase them off the shelf rather than spend time getting the items weighed and packed. In the letter, Vijayan said such pre-packing is a common practice in most of the retail shops in Kerala and the present change will have an adverse impact on the large number of ordinary customers who frequent these shops for their essential purchases. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/cryptocurrency/news/singapore-to-to-act-tough-on-crypto-platforms-in-the-coming-months/articleshow/92994010.cms">Singapore to to act tough on crypto platforms in the coming months</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/news/food-items-when-sold-loose-wont-attract-any-gst-says-nirmala-sitharaman/articleshow/92993947.cms">Food items when sold loose won't attract any GST, says Nirmala Sitharaman</a>

Kerala will not levy GST on items sold by cottage industries

New Delhi, Dec 16 () The impact of GST on growth will take time and results will not be visible overnight, according to Bibek Debroy, Chairman, Economic Advisory Council to the Prime Minister (EAC-PM).
Noting that Goods and Services Tax (GST) is a work in progress, he said that when it was introduced, there were people who said the new indirect tax regime would lead to incremental GDP growth of 1.5-2 per cent.
"This is regarding the fact that the estimate was done by NCAER (National Council of Applied Economic Research) for the ninth Finance Commission for terminal ideal GST, whereas GST -- which is work in progress - may take 20 years. It is not that you are going to get 1.5-2 per cent (additional) GDP growth overnight," he said on Monday.
India's GDP growth rate has fallen to an over 6-year low of 4.5 per cent in the second quarter of current fiscal. Collections under the GST, which was introduced in June 2017, has remained mostly below the target.
The GST collections came in at Rs 95,380 crore in October, down 5.29 per cent from Rs 1,00,710 crore in the same month last year, as per government data.
This was the third consecutive month when GST mop-up remained below the Rs 1 lakh crore mark, despite festival season. KPM KPM BAL
BAL

You Searched For "GST impact" and got 13 results

GST Council mulling 18% GST on low value transactions made via RazorPay, PayPal and more. Here's how it will impact you

Ira Alok Puranik

Hero MotoCorp gets over Rs 17 crore tax notice from Delhi GST authorities

PTI

Budget 2024: Three things the insurance sector want from FM Sitharaman this budget.

Ira Alok Puranik

How are the new GST changes going to impact you?

Business Insider India

Automobile dealers' association seeks GST cut on 2-wheelers from 28% to 18%

ANI

Retail vehicle sales decline 4% in April, says FADA as it remains cautious about May

Anagh Pal

Online gaming industry says 28% GST makes operations unfeasible

Anagh Pal

GST collections stood at ₹1,43,612 crore in August

IANS

India is betting on casinos, online games and horse races to fill its coffers

Rounak Jain

GST Council discuss coronavirus impact on economy

PTI

28% GST on crypto transactions? India is reportedly mulling another tax levy next week

BI India Bureau

Kerala will not levy GST on items sold by cottage industries

PTI

Impact of GST will take time to show results: Debroy

PTI

Popular Keywords

Buying Guides