The November GST collection of Rs 1.68 lakh crore is a 2% decrease compared to the Rs 1.72 lakh crore collected in October.

This represents the ninth consecutive month in which the monthly GST collection has surpassed Rs 1.5 crore.

Recent GST data places the average monthly collection at Rs 1.67 lakh crore in 2023-24. Over time, monthly GST collections have increased. After being severely impacted by the pandemic in 2020-221, monthly collections skyrocketed from an average of less than Rs 1 lakh crore in 2017-18, its inaugural year, to Rs 1.51 lakh crore in 2022-23.

State GST was Rs 38,226 crore, Integrated GST was Rs 87,009 crore, and compensation cess was Rs 12,274 crore in November. Central GST was Rs 30,420 crore.

In addition, the government transferred Rs 37,878 crore from Integrated GST to the Central GST and Rs 31,557 crore to the State GST. Consequently, the aggregate revenue for the month subsequent to the settlement amounted to Rs 69,783 crore for the State GST and Rs 68,297 crore for the Centre.

“During the month, the revenues from domestic transactions (including import of services) are 20 percent higher than the revenues from these sources during the same month last year,” according to a statement from the finance ministry.

Although November saw a slight decrease in total GST collections compared to October, the year-on-year growth of slightly more than 15 percent is the highest recorded thus far in the fiscal year 2023-24. Indeed, November witnessed the greatest year-on-year growth in GST collections in the past eleven months.

In accordance with the Budget for 2023-24, the Centre anticipates a 12 percent increase in GST collections for the current fiscal year. The aggregate GST collected thus far in the first eight months of the year amounts to Rs 13.32 lakh crore, representing an increase of 11.9 percent compared to the corresponding period in the previous year.

The PMI data is released one day after the statistics ministry reported that the manufacturing sector of the Indian economy expanded by 13.9 percent year-on-year during the July-September period, which was faster-than-expected at 7.6 percent.

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Pratik Jain, Partner at Price Waterhouse & Co LLP, predicts that audits and investigations will likely contribute to the upward trend in GST collections throughout the remainder of 2023–2024.

“It’s interesting to see that robust growth in GST (compared to last year) is seen in most of the manufacturing states, indicative of uplift in demand and consumption,” Jain commented.Services Tax mop-up expenses have surpassed Rs 1.5 lakh crore.

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“GST revenue collection in October 2023 is the second highest ever, trailing only April 2023.” Domestic transaction revenue (including service imports) is up 13 percent year on year. “The average gross monthly GST collection in FY 2023-24 is now Rs 1.66 lakh crore, an increase of 11% year on year,” the finance ministry stated in a statement.

The October GST collection is 5.71 percent more than the September collection, at Rs 1.72 lakh crore.

This is the eighth month in a row that monthly GST collection has exceeded Rs 1.5 lakh crore.

Monthly GST receipts have increased over time. From less than Rs 1 lakh crore per month in its first year, receipts increased rapidly following the pandemic-hit 20202-21 to Rs 1.51 lakh crore in 2022-23.

The average gross monthly GST collection in FY 2023-24 is presently Rs. 1.66 lakh crore, which is 11% more than the same period in the previous fiscal year.

According to the 2023-24 Budget, the Centre anticipates GST collections to increase by 12% in the current fiscal year.

In October, the Central GST totaled Rs 30,062 crore, the State GST totaled Rs 38,171 crore, the Integrated GST totaled Rs 91,315 crore, and the compensatory cess totaled Rs 12,456 crore.

The government settled Rs 42,873 crore to Central GST and Rs 36,614 crore to State GST from the Integrated GST in October. As a result, the total revenue for the month after settlement for the Centre was Rs 72,934 crore and Rs 74,785 crore for State GST.

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It is the sixth month in a row that the monthly mop-up has come in above the Rs 1.5-lakh-crore level, with August’s revenues of Rs 1.59 lakh crore being 3.7% lower than the Rs 1.65 lakh-crore collected in July.

In the current fiscal year, the Centre projects a 12 percent increase in GST receipts, as outlined in its Budget for 2023-24.

Source: Ministry of Finance

Total GST was Rs 83,251 crore, including compensatory cess of Rs 11,695 crore. Central GST was Rs 28,328 crore, State GST was Rs 35,794 crore, and Integrated GST was Rs 83,251 crore.

The August Integrated GST settlement included payments of Rs 37,581 crore to Central GST and Rs 31,408 crore to State GST. Therefore, after settlement, the Central Government received Rs 65,909 crore and the State Government received Rs 67,202 crore in GST revenue for the month.

“During the month, revenue from import of goods was 3 percent higher and the revenues from domestic transactions (including import of services) are 14 percent higher than the revenues from these sources during the same month last year,” the finance ministry stated.

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“These GST collections, coming in the backdrop of the good GDP growth in the first quarter heralds the onset of the festive season where consumption increases occur,” said MS Mani, partner at Deloitte India.

All major producing and consuming states have reported increases of 10%-23%, Mani said, suggesting that the rise in domestic consumption is being felt across the board.

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New estimates for GST show that 2023-24 will see monthly average collections of Rs 1.66 lakh crore.

The amount of GST collected each month has increased over time. After a slow start in its inaugural year (2017–18), when monthly receipts averaged less than Rs 1 lakh crore, they skyrocketed in the years after the epidemic, averaging Rs 1.51 lakh crore in 2022–23.

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According to Nirmala Sitharaman, the minister of finance, the enabling legislation to apply the increased taxation on online gaming is likely to be taken up in the current session of Parliament, and the date of implementation is projected to be October 1.

Sitharaman also noted that the council had decided to assess how the increased GST on online gaming had fared after six months of implementation.

Less than a month after the council resolved on July 11 to collect a 28 percent tax on the full amount of the money paid by consumers to online games in a uniform manner, making no distinction between games of skill and chance, they met via video conferencing on August 2.

The meeting’s brief agenda centred on a discussion of how online gambling is taxed in light of Schedule 3 of the Central Goods and Services Tax Act, 2017. This act defines and taxes lottery, betting, and gambling.

The amendment, which proposes to include winnings and deposits (including virtual digital assets) in the 28 percent bracket, was adopted by the council.

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Users of online skill games, the firms argued, will turn to offshore platforms for entertainment since they will have no money left after paying taxes on their gains.

The sector emphasised that guaranteed prize pools in fantasy sports are taxed differently than online skill gaming around the world. The corporations justified their suggestion with references to UK taxation, where online casual games of skill incur a normal VAT (value added tax) of 20% (on GGR-gross gaming revenue) and fantasy sports incur a tax of 21%. The Australian goods and services tax (GST) on gross gaming revenue (GGR) for online casual games of skill is 10 percent, whereas the GST on GGR for online fantasy games is 15 to 20 percent.

The gaming businesses, who represent over 400 million users, asked that their submission not be categorised with games of chance. In addition, they emphasised that up to 75% of the deposit money is returned back by the user in the form of winnings, making price elasticity very low, such that all continuous game forms would be forced to shut down if GST were applied on deposits. The gaming firms also stated they forwarded the data to the Ministry of Finance.

On July 28, businesses involved in online casual skill gaming wrote to the Ministry of Finance and all members of the GST Council requesting special tax status that is unique from that given to the fantasy sports industry. Over 120 online skill game companies, they claim, will be forced to close due to the excessive taxation.

Users of online skill games, the firms argued, will turn to offshore platforms for entertainment since they will have no money left after paying taxes on their gains.

The sector emphasised that guaranteed prize pools in fantasy sports are taxed differently than online skill gaming around the world. The corporations justified their suggestion with references to UK taxation, where online casual games of skill incur a normal VAT (value added tax) of 20% (on GGR-gross gaming revenue) and fantasy sports incur a tax of 21%. The Australian goods and services tax (GST) on gross gaming revenue (GGR) for online casual games of skill is 10 percent, whereas the GST on GGR for online fantasy games is 15 to 20 percent.

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The gaming businesses, who represent over 400 million users, asked that their submission not be categorised with games of chance. In addition, they emphasised that up to 75% of the deposit money is returned back by the user in the form of winnings, making price elasticity very low, such that all continuous game forms would be forced to shut down if GST were applied on deposits. The gaming firms also stated they forwarded the data to the Ministry of Finance.

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According to attorney Jay Sayta, the increased taxes will have an effect greater than ten times that of the tax already paid by gamers.

Previously, GST was paid at the rate of 18% on the Rs 5, or 90 paise, if a player wagered Rs 100 and the platform charge or commission of the online gambling website was 5%. He continued, “Under the proposed proposal, the consumer would be responsible for a tax that is 31 times greater than the tax that is already being borne by the consumer, since the 28 percent tax on the Rs 100 entry charge (28 percent GST is on the face value) would be Rs 28.

On July 11th, the GST Council proposed a uniform 28 percent tax on the entire face value of all casino, horse racing, and online gaming.

Saket Patawari, executive director, of indirect tax, Nexdigm, noted that GST at 18% was collected on gross gaming revenue or the platform fee, which ranges from 5% to 20% of the value of bets placed.

More expensive

The GST Council has decided that an up-front GST of 28% must be charged on the full Rs 100 wager amount. According to Patawari, “after deducting the platform fee, the player’s contribution towards the prize money would be significantly reduced.”

He suggested raising bet sizes to account for the GST’s 28% cut, which would leave the prize pool unaltered.

“This could scare off players because they’d have to pay more than they are now,” he warned.

The current Goods and Services Tax (GST) rate for Gamerji, a platform that provides gaming on a subscription basis, is 18%.

According to the company’s creator, “this now has gone up by 28 percent,” making it more expensive for customers to join the site.

However, Prashant Joshua, 1verse’s founder, argues that the hike in tax rate will eat away at the prize pool amounts despite the fact that gamers’ outlays won’t alter. He noted that this would cause a loss of income for both the government and the platforms as gamers sought for alternatives to complying with the law.

Unsustainable for gamers

According to Thacker, winnings are already subject to a 30 percent tax deduction at source (TDS).

“This action would have a setback on business and customer base of real money gaming enterprises,” Thacker added. “This step (28% GST on face value).

According to Karan Gandhi, co-founder of PokerDangal, not only does the increasing tax burden put strain on the profitability of operators, but it also risks dampening the enthusiasm of players.

L Badri Narayanan, executive partner at Lakshmikumaran & Sridharan, said that TDS on the winning amount, in addition to taxing the whole value of the wagered money, will significantly affect the prize pool and incentives for players.

Customer interest will be impacted because this will help the growth of grey market operators and the dark web. He further noted that the GST Council’s approach was not in line with standard international taxation procedure.

Sayta argued that the new tax rate of 30 percent or more, on top of the current GST rate of 28 percent, would make it impossible for gamblers to turn a profit under any circumstances.

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Is GST on total consideration for online gaming fair?

“The number of active gamers or those who would want to play in a legitimate manner would certainly reduce as winning any amount on a consistent basis is almost impossible. Gamers would be forced to use illegal offshore gaming platforms that may even cheat their money or not pay out winnings and they may not have any recourse. The move will also result in the flight of money outside India through illicit channels for playing on foreign gambling or betting websites,” he added.

Illegitimate platforms

According to Roland Landers, CEO of the All India Gaming Federation, offshore online betting and gambling companies that provide services unlawfully in India are not compelled to comply with consumer protection and user safety regulations, which is harmful to the interests of Indian gamers.

He estimated that there are approximately 450 million gamers in India, and that many of them could be tempted by the underground economy.

The Twitter bio for online bookmaker 1xbet already boasts, “NO 28% GST AND TDS.”

According to Utkarsh Sinha, managing director of Bexley Advisors, the possibility for moving participants almost totally towards untrustworthy unregulated businesses considerably outweighs the benefits that the government could gain from the increased tax collection. As a result of the higher tax, businesses will either lower prices to keep customers or see a reduction in their client base if they pass the cost on to consumers.

Revenue Secretary predicts a yearly gain of Rs. 20,000,000,000 from a 28% GST on online gambling.

Witzeal Technologies’ vice president of finance, Aman Gupta, warned that a rise in the tax rate will ultimately reduce the value of the prize pool.

The use of Indian skill gaming platforms will be discouraged. Players are likely to look elsewhere, such as on offshore or illegal gambling sites, even if the platforms decide to charge no or little platform fees. He predicted that both skill gaming businesses and the government would see significant losses in revenue as a result.

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The Multiplex Association of India had requested that the tax on culinary services in movie theaters be reduced. According to the report, their representation to the GST Council occurred after confusion arose due to reports of theatres receiving ‘notices’ regarding the GST that they were imposing.

What does ‘5% tax’ mean?

Currently, movie tickets priced over 100 are taxed at 12%, and those priced over 200 are taxed at 18%. Therefore, when theaters offer customers an online combo option for food and a movie, the GST will be applied to the total price and will be taxed at 18%.

The 5% GST, on the other hand, is applicable when food is purchased at the theater separately from the movie ticket. To avoid the increased GST, industry professionals advise consumers not to pre-order snacks.

Food and beverages account for nearly half of the price of admission.

According to Nitin Sood, CFO of PVR Inox, food and beverages (F&B) alone account for up to 52 percent of the price of a movie ticket.

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Consumers spend approximately 50-52% of their average ticket price on food and beverages. And there is no reason for this number not to be greater. This ratio has been as high as 70-75 percent in Western countries. And it is our intention, over the next few years, to increase the overall food and beverage consumption in movie theaters.

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FM Sitharaman announced that the GST Council had decided to impose a 28% tax at the point of entry on the full face value of bets placed on online gaming, casinos, and horse racing.

According to FM Sitharaman, the GST law would be amended to clarify that the aforementioned services do not give rise to actionable claims, such as those in the lottery and the betting industries.

The GST Council’s talks on internet gambling earlier today were deep. The Council will maintain communication with the government’s IT department. The FM continued, “We will conform to whatever regulation the Ministry promulgates.”

Sitharaman underlined that the 28 percent GST levy on online gambling would be implemented following modifications to GST law.

The minister of forests, cultures, and fisheries in Maharashtra, Sudhir Mungantiwar, recently announced that the state council has resolved to eliminate the distinction between games of skill and games of chance when it comes to iGaming.

Whether a game of skill or chance, all online betting and gambling are currently subject to a GST of 28 percent. The percentage of GGR levied on all other games is 18 percent.

‘Not targeting any industry,’ says Sitharaman 

The GST Council does not wish to harm the internet gambling industry or states that currently host casinos. There were a few worried states. But the ethical challenge is whether we should prioritize them over necessities. I am pleased to report that the GST Council has reached a conclusion after two or three years of deliberation. Finance Minister Sitharaman characterized the situation as “very complex.”

GST appellate tribunals to be set up

Appeals boards for the GST will be established gradually. According to FM Sitharaman, GST appellate tribunals will first be established primarily in state capital cities and where high court benches are located.

Revenue Secretary Sanjay Malhotra has stated that the GST Appellate Tribunal should begin hearing cases this fiscal year.

Items exempted from GST rates

The GST Council also agreed to remove pharmaceuticals used to treat cancer and uncommon disorders from the charge, the FM said.

The import of the cancer medicine Dinutuximab and FSMPs used to treat uncommon disorders were both exempted from GST by the Council.

The FM also noted that private satellite launch services are no longer subject to GST.

Rates on fish soluble paste, LD slag from 18% to 5%

Sitharaman announced a cut in tariffs from 18% to 5% on four products, including fish soluble paste and LD slag.

Tax on food and beverages in cinemas will be 5%

Revenue Secretary Sanjay Malhotra confirmed the GST Council’s decision to set the GST rate on food and beverages sold in theaters at 5%.

22% cess on MUVs but sedans are not included

The current GST cess of 20% has been raised to 22% for MUVs that match the standards for length and engine size. The levy on corporations will rise by 2%.

Follow our GST Council Meeting Live blog for more updates

Rs 17,000 crore tax evasion found in drive against fake input tax credit

A total of Rs 17,000 crore in tax fraud was discovered in the taxation department’s drive against false input tax credit, the Revenue Secretary said.

GST on casinos, horse racing, online gaming: Industry experts unhappy

IThe GST Council’s decision to impose a 28 percent GST on online gambling and horse racing was met with widespread disapproval from industry professionals.

The Indian players will be severely hampered by a 28% tax rate being imposed on the gambling business. If special cases are made, we need to see the notice language in its entirety. With this new round of litigation, it’s possible that letters for differential tax may be sent out to those involved in the gaming industry right away, as predicted by Ankur Gupta, Practice Leader (Indirect Tax), SW India.

“This is completely against the vision of the government to promote online gaming in India,” said Sudipta Bhattacharjee, Partner at Khaitan & Co. The Karnataka High Court’s conclusions in Gameskraft that skill games are separate from chance games are underappreciated. The constitutionality of the proposed approach to taxing online gambling remains to be seen. In any event, it’s too late to execute this change retroactively.

Decisions on GST rates, rules, and regulations are made by the GST Council, and any modifications to these policies require unanimous approval from the council’s members. The council’s recommendations may have far-reaching effects on Indian industries and consumers.

GoM convener and Meghalaya Chief Minister Conrad Sangma presented a report on the taxation of gambling establishments to Union Finance Minister Nirmala Sitharaman in December.

After delivering the report at the time, Sangma had indicated that the GoM had provided it with several points of view since they were unable to reach a consensus. He then emphasized that the GST Council would be making the ultimate decision.

West Bengal, Uttar Pradesh, Goa, Tamil Nadu, Telangana, Gujarat, and Maharashtra are the eight states represented in the Group of Ministers in the GST Council, which was convened by Meghalaya Chief Minister Conrad Sangma.

The Finance Minister’s Office, Nirmala Sitharaman, tweeted before the 50th meeting, “The 50th meeting is a milestone which indicates success of cooperative federalism and establishment of a good & simple tax regime.”

In the spirit of cooperative federalism, the council has held 49 meetings and made around 1,500 decisions prior to the 50th meet.

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Friday, the Pune region of the Maharashtra GST department arrested UP businessman Sirajuddin Kamaluddin Chaudhary from Siddartha Nagar in Uttar Pradesh (UP) for fraudulently claiming Rs12.59 crores in input tax credit (ITC) against nearly Rs70.22 crores in fake goods’ purchased bills. On Sunday, the accused was brought to Pune on transit remand and remanded to two weeks of judicial custody by a magisterial court. According to the GST department, Chaudhary is the 68th GST evader to be apprehended in 2022-23. At GST Bhavan, the joint commissioner of state tax for Pune stated that it was an interstate operation involving officials from the GST department, Pune, and the UP police.

The department issued a press release stating, “During the investigation, it was determined that four major suppliers do not exist or are fake, as their GST registrations were obtained fraudulently using forged documents. Multiple investigations were conducted in the cases of these suppliers, and it was determined that Chaudhary unlawfully obtained ITC in the amount of Rs12.59 crores by using fake bills totaling Rs70.22 crores without the actual receipt of goods.

Chaudhary evaded capture and hid in a northern state. To apprehend the perpetrator, a special investigation team (SIT) was formed and dispatched to UP. On March 10, the team, with the assistance of the UP police, located and arrested the suspect. Subsequently, he was transferred to Pune on transit remand issued by the chief judicial magistrate of Siddhartha Nagar, Uttar Pradesh. “Upon appearance before the chief judicial magistrate of Pune, the defendant was remanded to 14 days of judicial custody,” stated the press release.

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Additional commissioner of state tax (Pune zone) Dhananjay Akhade, joint commissioner of state tax (Pune 2) Deepak Bhandare, and deputy commissioner of state tax Manisha Gopale-Bhoir oversaw the operation, which was led by assistant commissioners of state tax Sachin Sangle, Dattatraya Telang, Satish Lanke, and Satish Patil, along with state tax inspectors and other team members.

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Gold prices are on fire and every day it is creating new records. Encouraged by the increase in sales during Diwali and Dhanteras in October last year, jewelers were expecting an increase in demand in the new year, but the rate at which the price of gold is rising, seems to be dashing these hopes. Internationally, gold prices have increased from around $1,615 in November 2022 to around $1,921 an ounce now. According to the Indian Bullion Jewelers Association, gold is trading at a new record high of Rs 5,681 per gram in the domestic market.

Old record was broken last week

Last week on Friday, Gold touched a new high of Rs 56,245 per 10 grams, breaking its record for the last 28 months. This was its new high after August 2020. Let us tell you that earlier on August 8, 2020, the price of gold had reached Rs 56,191 per 10 grams. On the other hand, on the first trading day of the week, it reached a new record high on Monday and according to Indian Bullion Jewelers (IBJ), gold has reached Rs 56,810 per ten grams.

sky high price in domestic market

Talking about the domestic market, according to the website of the Indian Bullion Jewelers Association (IBJA), Fine Gold (999) was trading at Rs 56,681 after removing GST till 2.30 pm on Monday. Apart from this, the price of 22 carat gold was Rs 55,450 per 10 grams and 20 carat gold was at Rs 50,560 per 10 grams.

Significantly, mostly only 22 carats are used for making jewellery. Some people also use 18 carat gold. Hall mark is made on the jewelery according to the carat. 999 is written on 24 carat gold jewellery, while 958 is written on 23 carat, 916 on 22 carat, 875 on 21 carat and 750 on 18 carat.

Effect of low inflation in US

According to experts who closely monitor the commodity market, the impact of the reduction in US Inflation figures is being seen on gold prices. There has been a fall in the dollar index, due to which there is a strong increase in the prices of gold in foreign markets. Due to this, the price of gold is on the high even in the domestic markets.

before the wedding season

This big jump in gold prices has come at a time when the wedding season is about to begin. Due to the decrease in the inflation rate, the expectation has increased that now there will be a brake on the pace of increase in interest rates by the US Federal Reserve (US Fed). On the other hand, a decline was registered in the global rate of silver.

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