News Today Logo

Posted 27 Mar 2025

2 min read

An image showing details of GST framework.

Key Issues Highlighting the Need for Review of GST Framework

  • Issues of MSMEs: Struggle with compliance due to complexity of Inverted Duty Structure and administrative burden.
  • Issues of Exporters: Face delays in input tax credit (ITC) refunds, causing cash flow issues and reducing global competitiveness.
  • Issues of steel rolling mills: Pay dual taxes as scrap dealers evade GST (thus, hindering ITC claims by mills); some businesses relocate to states with GST relaxations.
  • Tax evasion by Online Gaming Sector: Despite recent amendments to the GST law targeting this sector, tax evasion persists due to varied business models. 
    • From October 1, 2023, online gaming is taxed at 28% GST. 
    • Suppliers of online money gaming must register under the Simplified Registration Scheme of the IGST Act.
    • The Directorate General of GST Intelligence (DGGI) can direct intermediaries to block unregistered offshore gaming platforms violating the IGST Act.

Way ahead

  • Simplified GST compliance framework specifically designed for MSMEs, 
  • Dedicated fast-track refund processing system for exporters, ensuring that ITC claims related to exports, 
  • A detailed independent study to understand the revenue streaming models adopted by various gaming platforms and accordingly develop a comprehensive guidelines specifically tailored to the online gaming sector. 
  • Tags :
  • Taxation
  • GST
  • Online Gaming Sector
  • DGGI
Watch News Today
Width resize handle
Height resize handle

Search Notes

Filter Notes

No notes yet

Create your first note to get started.

No notes found

Try adjusting your search criteria.

Subscribe for Premium Features