Foreign giants on notice: Govt expects ₹2,000 revenue surge from GST compliance

livemint.com:

Delta Corp gets another GST shortfall notice of ₹6,384 crore With these changes, the government expects to collect around ₹2,000 crore in the current financial year (FY2023-24), a significant rise from the approximately ₹700 crore collected in the previous financial year (FY2022-23) from foreign firms providing various digital services in India, a government official told the paper. Previously, only business-to-business services were subject to IGST, and there was no tax obligation for individuals and government entities acquiring non-business services from overseas Online Information Database Access and Retrieval (OIDAR) service providers outside of Indian jurisdiction. The official further said that they are keeping a close eye on companies that have been evading GST.

Also Read: GST on water takes a political twist While most major players in the subscription model have followed the rules, there are exceptions in certain revenue streams. However, many mid- to small-sized players have not yet registered for tax purposes, they added. The official also emphasised the importance of paying taxes and filing returns under the OIDAR provisions.

According to the same official, online gaming and advertising firms, along with smaller subscription-based players, are among the significant defaulters. The introduction of these new norms is aimed at ensuring compliance when overseas entities offer services to the Indian user base. Overseas suppliers delivering services to Indian consumers must now undergo a simplified registration process under the GST law, either directly or through representatives in India, to ensure tax compliance, the r.