Stay ahead of the curve with the latest GST updates, exclusively brought to you by GST Hero. Our platform delivers timely and comprehensive insights into the ever-evolving world of Goods and Services Tax. From regulatory changes to industry trends, trust GST Hero to keep you informed for success in your GST compliance journey.
Section 122A
Section 122A of the GST Law introduces penalties for individuals manufacturing goods covered by special registration procedures outlined in Section 148. Penalties include a Rs. 1 lakh fine per unregistered machine and possible seizure and confiscation. However, machines won’t be confiscated if the penalty is paid and registration is completed within three days. Notification No. 4/2024-Central Tax dated 05-01-2024 outlines the special registration procedures, including goods like pan masala and tobacco subject to these rules.
Rule 23 (1) Update
A registered person whose registration is canceled by the proper officer may apply for revocation of cancellation in FORM GST REG-21 within ninety days from the date of the cancellation order. This application can be submitted directly at the common portal or through a designated Facilitation Centre. The Commissioner or an authorized officer may, for valid reasons recorded in writing, extend this period by up to one hundred and eighty days.
However, no application for revocation can be filed if the cancellation resulted from the failure to furnish returns unless all outstanding returns are filed and any tax, interest, penalty, and late fee due are paid. Additionally, all pending returns from the date of cancellation to the date of revocation order must be filed within thirty days of the revocation order.
If the cancellation is retrospective, all returns from the effective cancellation date to the revocation order date must be filed within thirty days of the revocation order.
18.48% Increase in Tax Revenues
The Union finance ministry announced a significant 18.48% annualized rise in gross direct tax revenues, reaching Rs. 23.37 lakh crore in the fiscal year 2023-24. This growth was complemented by a substantial 17.70% increase in net revenues, totaling Rs. 19.58 lakh crore. The surge in collections primarily stemmed from robust contributions from individual taxpayers. Post-refunds, the provisional figures for net direct tax revenue surpassed both the Budget Estimates (BE) and the Revised Estimates (RE) for FY24, reflecting improved compliance among individual taxpayers, as per official data.
28% GST on Online Gaming
The GST Council is poised to convene in June to review the impact of the 28% GST rate implemented on online gaming since October 1 of the previous year. Moneycontrol reported that the meeting, scheduled for the end of June following the formation of the new government, will scrutinize the revenue generated from online gaming during this period. According to a government official, the 28% rate is likely to persist, given the significant surge in GST revenue from online gaming, which has escalated five to six times over the past six months.
Previously, the GST collection from online gaming companies stood at INR 200 crore monthly, but following the imposition of the 28% GST rate, it has soared to INR 1,000 crore. The move to levy 28% GST on entry-level payment for online gaming was announced by the GST Council last year, aligning with governmental efforts to regulate online real money gaming.
Conclusion
Staying informed about the latest GST updates is pivotal for businesses navigating the complexities of tax compliance in India. With GST Hero as your trusted partner, you gain access to timely insights and comprehensive analyses, ensuring you’re always ahead of the curve.
From critical regulatory changes like Section 122A and Rule 23(1) updates to macroeconomic shifts such as the remarkable 18.48% increase in tax revenues, our platform keeps you well-equipped to navigate the evolving landscape.
As we move forward, count on GST Hero to continue providing invaluable support and expertise for your GST compliance journey.