The online gaming companies, that have been served notices worth Rs 1 lakh crore may seek an extension from the tax department to file their replies, Sanjay Kumar Agarwal, Chairman, Central Board of Indirect Taxes & Customs (CBIC) said on Wednesday on the sidelines of an event organized by the confederation of Indian industries (CII).
“The amounts mentioned in the show cause notices, the replies can be filed by the companies putting forth their point of view. As per the understanding of the tax department, the notices have been issued. But they have the right to put up their point of view and then these notices will be adjudicated. In notices, the time has been mentioned to file their replies. They may seek extension also to file their replies,” Agarwal stated.
Meanwhile, he also refuted the claims that the buoyancy in GST revenue was due to taxes levied on online gaming companies. “The growth in GST collection has come purely from economic activity. Last month, growth was not only from domestic GST supplies but it was from IGST supplies. The imports were healthier as the companies may be replenishing their stock ahead of Diwali festival,” Agarwal added.
On speculation that the Centre may cut excise duties ahead of the general election, the CBIC Chairman said, “Excise duties are levied on a very few products, which are mainly petroleum products. So, depending upon the prices prevailing in the international market, the excise duty rates are calibrated accordingly and are not dependent upon GST collection.”
Furthermore, he stressed that taxpayers should do some introspection while seeking an exemption or lower tax rates from the Centre as it disrupts the input tax credit mechanism.
Source from: https://www.newindianexpress.com/business/2023/nov/09/gaming-companiesmay-seek-time-for-gst-replies-2631447.html#:~:text=NEW%20DELHI%3A%20The%20online%20gaming,event%20organized%20by%20the%20confederation