Parliamentary Committee on Public Accounts Sought Comprehensive Review Of GST Framework | Current Affairs | Vision IAS
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Parliamentary Committee on Public Accounts Sought Comprehensive Review Of GST Framework

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
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