Chennai: Tamil Nadu govt has tightened GST valuation and compliance rules for tobacco, pan masala and online gaming to plug potential revenue leakage and improving tax collections from these sectors.By linking the taxable value of specified tobacco products and pan masala to their declared retail sale price, the govt seeks to prevent manufacturers and suppliers from understating product values to reduce their tax liability. The retail sale price is the maximum price declared on packaged goods for sale to consumers and includes taxes, duties, surcharges and cess.When a package shows multiple retail prices, the highest will be considered. Any subsequent increase in the declared price will also be factored in, while area-specific prices will be applied based on the intended market.In another change, the govt has tightened GST valuation for online gaming and casino transactions. For online gaming, the taxable value will include the entire amount paid or deposited by a player, including cash and virtual digital assets. Operators cannot deduct refunds or unused deposits while calculating taxable value.For casinos, the value will be based on the amount paid for tokens, chips, coins or tickets, or for participating in games. However, winnings retained and reused in another game without being withdrawn will not be treated as a fresh deposit.Overseas online money gaming operators and providers of online information and database services must file monthly GSTR-5A returns by the 20th of the succeeding month. Their registration applications must disclose the nature of services, the commencement date of operations in India and website or app URLs. They must also undertake to collect and remit applicable GST.The amendments of Tamil Nadu GST rules 2017 were notified by the Commercial Taxes and Registration Department on Oct 3 done following recommendations of the GST Council.The change is expected to limit suppliers’ ability to declare lower invoice values despite selling products at higher retail prices. However, officials said the notification does not quantify the additional revenue expected from the revised mechanism, adding that it will be assessed as filings occur.
