The Union Finance Minister Nirmala Sitharaman chaired the 55th meeting of the GST Council today ( 21st December 2024 ) in Jaisalmer, Rajasthan. The Minister announced an important amendment related to suppliers of Online Information and Database Access or Retrieval ( OIDAR ) services, including online gaming platforms.
The decision made during the 55th GST Council meeting chaired by Union Finance Minister Nirmala Sitharaman, mandates that suppliers record the state as the address for unregistered recipients on tax invoices.
This measure clarifies the place of supply provisions under the Integrated Goods and Services Tax ( IGST ) Act, 2017. For suppliers of online services to unregistered individuals, the recipient’s state must now be explicitly mentioned on the tax invoice, which will also be considered the recipient’s “address on record” as per section 12(2)(b) of the Integrated Goods and Services Tax ( IGST ) Act, 2017 read with proviso to rule 46(f) of CGST Rules, 2017.
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The regulation specifically targets sectors related to cross-border and interstate transactions, such as online gaming and OIDAR services. By clearly defining the place of supply, the government seeks to prevent revenue leakage and streamline tax collection for these rapidly growing industries.
The meeting was attended by Union Minister of State for Finance, Shri Pankaj Chaudhary, Ajay Seth ( Revenue Secretary ) along with Chief Ministers from Goa, Haryana, Jammu and Kashmir, Meghalaya, and Odisha, and Deputy Chief Ministers from Arunachal Pradesh, Bihar, Madhya Pradesh, and Telangana.
Alongside this decision, the GST Council also made several recommendations, including a reduction in GST rates for select goods such as fortified rice kernels, an exemption of GST on gene therapy and specific contributions to road accident funds, and amendments aimed at clarifying taxability and compliance procedures for vouchers and penal charges imposed by banks.
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