According to a report, the law committee has suggested adding a new Section 11A to the CGST Act.
The suggestion will be discussed by the GST Council at its next meeting on June 22.
The Central Goods and Services Tax (CGST) Act, 2017 may be amended by the Goods and Services Tax (GST) Council to eliminate retroactive tax demands, which might be a benefit to the online gambling industry. The law committee's proposal seeks to resolve tax notifications that were sent out in cases where reduced taxes were paid as a result of ambiguities in the law or difficulties with interpretation.
A report in the Economic Times states that the legal committee has suggested adding a new Section 11A to the CGST Act. This provision would provide the government the authority to forgo collecting GST that was either under- or not collected at all as a result of commonplace customs.
This suggestion will be discussed by the GST Council at its next meeting on June 22. Should this modification be accepted, authorities would be able to reverse tax requests that were made in the past, providing the online gambling business with a great deal of relief.
The change does not, however, deal with the problem of overpaid taxes. Businesses who paid more GST as a result of these actions would not be refunded.
The Directorate General of Goods and Services Tax Intelligence (DGGI) found 6,323 instances of tax evasion totaling Rs 1.98 lakh crore during the 2023–2024 fiscal year. Out of all of them, the online gaming industry received the most tax evasion notices—more than Rs 1 lakh crore.
For companies negotiating the complexity of the GST system, the proposed legislative amendment is seen as a critical step toward bringing clarity and assistance.
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