Section 122A of the GST Law brings penalties for individuals involved in manufacturing goods subject to special registration procedures outlined in Section 148. The penalties include fines of Rs. 1 lakh per unregistered machine and the possibility of seizure and confiscation. However, confiscation of machines can be avoided if the penalty is paid, and registration is completed within three days of the penalty notice. Notification No. 4/2024-Central Tax dated 05-01-2024 details the special registration procedures, covering goods like pan masala and tobacco under these regulations.
Rule 23 (1) Update: Procedure for Revocation of Cancellation
A registered person whose registration is canceled by the proper officer can apply for revocation of cancellation using FORM GST REG-21 within ninety days from the cancellation order date. 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 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 reported 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 accompanied 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, indicating improved compliance among individual taxpayers, as per official data.
28% GST on Online Gaming
The GST Council is scheduled to convene in June to review the impact of the 28% GST rate imposed on online gaming since October 1 of the previous year. Moneycontrol reported that the meeting, set for the end of June following the formation of the new government, will assess 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: Importance of Staying Informed about GST Updates
Remaining updated on the latest GST developments is crucial for businesses navigating the intricacies of tax compliance in India. Adapting to regulatory changes and understanding the implications of new policies is essential for ensuring compliance and minimizing the risk of penalties. Stay informed to stay ahead in the ever-evolving landscape of GST regulations.
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