NEW DELHI: Even as 2023 draws to a close, goods and services tax (GST) remains a work in progress. While it saw its fair share of controversies, the year saw GST revenue collection hitting a new peak.
In April 2023, the monthly GST collection of Rs 1.87 lakh
crore was the highest ever. This milestone was followed by yet another robust month in October, with collections reaching Rs 1.72 lakh crore - the second-highest since the introduction of GST in 2017. In the period from January to November 2023, the total GST revenue stood at Rs 17.96 lakh crore, marking a substantial increase of 12.25% in year-on-year growth.
One notable achievement was the increased frequency of meetings held by the GST Council, which convened four times in 2023 as against just two meetings held in the preceding year. The Finance Ministry notified 31 benches of the GST Appellate Tribunal (GSTAT) across all states and Union Territories was a welcome initiative.
These state-level benches aim to expedite dispute resolution, providing businesses with a swifter recourse than the burdened High Courts. However, the year was not without its share of challenges and controverises. Gaming companies found themselves at the epicenter of a controversy, as 71 show-cause notices were served by GST authorities, alleging GST evasion amounting to a staggering Rs 1.12 lakh crore for the fiscal year 2022-23 and the first seven months of 2023-24.
The dispute centered on whether games of skill, when played with money, should be categorized as betting or gambling. The contention intensified following a GST Council amendment in August 2023, which mandated a 28% GST rate on all online games involving bets, irrespective of skill or chance.