Title: Tamil Nadu Finance Minister Stresses Consistency in Taxing Online Games
Subtitle: Highlights Concerns at the 50th GST Council Meeting in New Delhi
New Delhi: Tamil Nadu Finance Minister Thangam Thannarasu emphasized the need for consistency between the Goods and Services Tax (GST) Act and the Online Gambling Prohibition Act at the 50th GST Council meeting. The Minister expressed concerns regarding the taxation of online games and argued that it should not conflict with the anti-online gambling law enacted by the Tamil Nadu government.
Representing the Government of Tamil Nadu at the meeting in New Delhi on July 11, Finance Minister Thangam Tennarasu voiced his position. According to a press release issued by the government, Minister Thennarasu stated that the Tamil Nadu government had implemented legislation to ban online gambling and regulate online games. Therefore, any recommendations for taxing online games under the GST Act should align with the Online Gambling Prohibition Act, he stressed.
Another matter of concern raised by the Minister was the Union Government’s notification dated July 7, 2023. This notification sought to include the GST under the Prevention of Money Laundering Act, 2002. Minister Thennarasu argued that this move would be detrimental to traders’ interests and run counter to the goal of decriminalizing GST violations. He further emphasized that such a measure would adversely affect not only traders nationwide but especially small businesses. The Tamil Nadu government opposes this notification, as it would greatly impact businessmen, he stated.
Minister Thennarasu also addressed exemptions under the GST Act. Currently, services relating to the Panchayat and Municipal bodies, as well as joint supply services, are exempt from the GST when received by local bodies and Union/State Governments, provided they do not exceed 25% of goods. The Tamil Nadu government opposes the proposed amendment to define certain tax-exempt items, as it would burden local bodies and the state government financially. The Minister urged for the complete abandonment of this amendment.
Additionally, the Minister advocated for the empowerment of the state-level selection committee in appointing judicial and technical members to the state sessions of the Appellate Tribunal under the GST Act.
Minister Thennarasu announced the support of the Tamil Nadu government for the tax exemption proposal on the import of expensive cancer drugs for personal use. Such a measure aims to reduce the additional expenditure due to the Integrated Goods and Services Tax.
Moreover, the government expressed its support for another tax exemption proposal, this time on the import of drugs and food for personal use in the treatment of certain rare diseases.
Representatives from the Tamil Nadu government, including Finance Principal Secretary T. Udayachandran and Commercial Tax Department Commissioner Dheerajkumar, participated in the GST Council meeting to address these concerns and push for the interests of the state.
In conclusion, the Tamil Nadu Finance Minister stressed the importance of consistency in taxing online games under the GST Act and called for measures that align with the state’s Online Gambling Prohibition Act. The government also voiced opposition to the inclusion of the GST under the Prevention of Money Laundering Act and emphasized concerns regarding exemptions and appointments under the GST Act.