The Goods and Services Tax (GST) Council is set to meet on September 9 to discuss an important amendment to the GST Act 2017. This amendment, known as Section 11A, is designed to shield businesses from punitive retrospective tax demands and could provide much-needed relief to industries like real-money gaming, which are currently dealing with pending GST dues.
The council’s previous meeting in June recommended the introduction of Section 11A as a safeguard against retrospective tax demands, aiming to alleviate financial burdens on affected industries. The forthcoming meeting will focus on finalizing how this amendment will be applied and interpreted, with an official circular expected to follow.
The real-money gaming sector, which has faced substantial retrospective tax demands for the period from July 1, 2017, to March 31, 2023, stands to benefit significantly from this amendment. Last December, the finance ministry issued 71 show-cause notices to online gaming companies for alleged GST evasion amounting to over Rs 1.12 lakh crore.
Additionally, businesses involved in corporate guarantees and other sectors also await clarity on past tax liabilities.
The GST Council’s decision could mark a significant step toward reducing litigation and improving the ease of doing business by addressing long-standing tax disputes and regularizing past trade practices.
