The Number of GST-Registered Taxpayers Doubles in Six Years, States Sitharaman

The count of entities enrolled to pay the GST has doubled to 14 million over the six years since its initiation, according to Finance Minister Nirmala Sitharaman's statement in the Lok Sabha. 

The passage of the Central Goods and Services Tax (Second Amendment) Bill, 2023, facilitates the alignment of age and qualification criteria with the Tribunal Reforms Act, 2021, clearing the path for establishing a GST appellate tribunal (GSTAT). In June 2023 data, Sitharaman mentioned that the number of taxpayers registered in GST has surged to 1.4 crore. 

She highlighted that at its launch in 2017, GST had only 67.83 lakh taxpayers, marking a substantial increase. Additionally, she emphasized the growth in gross monthly collections from under ₹1 lakh crore in 2017 to ₹1.87 lakh crore in April.

On Tuesday, the Lok Sabha passed an amendment Bill, aligning the Central Goods and Services Tax (CGST) Act, 2017, with the Tribunal Reforms Act, 2021. The changes involve adjusting the maximum age limit for the president of GSTAT and its members. The president's age limit is set at 70, while for members, it is 67. These adjustments, recommended during the 52nd GST Council meeting on October 7, reflect an increase from the previous limits of 67 and 65 years, respectively.

The Bill, introduced on December 13, received approval through a voice vote in the Lok Sabha. It also permits advocates with 10 years of experience to become judicial members. Finance Minister Sitharaman clarified that these amendments were made to address inconsistencies highlighted by the Chief Justice of India regarding the Tribunals Reforms Act, 2021. Once the legislation is enacted, the selection process for the president and members will commence.

The establishment of GSTAT aims to provide a centralized platform for taxpayers to expedite the resolution of their grievances cost-effectively. Once operational, taxpayers can withdraw existing cases from various high courts and approach the tribunal for resolution. 

GSTAT serves as the second appeal forum and the initial common forum for dispute resolution between the Centre and states. Section 109 of the CGST Act empowers the Centre to constitute GSTAT, including a national bench, state bench, and area benches.

Sitharaman, responding to queries during the discussion, clarified that the valuation rules for imposing 28% GST on online gaming are prospective, emphasizing that the exclusion of winnings is applied prospectively.

Additionally, the Lok Sabha passed the Provisional Collection of Taxes Bill, 2023, introduced on December 13. This bill allows the provisional levy or increase of customs or excise duties, subject to parliamentary approval within 75 days. 

If interim levies are not enacted, provisionally collected taxes will be refunded. The proposed bill replaces the Provisional Collection of Taxes Act, of 1931, with minor technical changes, providing the government with immediate tariff protection for the domestic industry, stabilizing commodity prices, and addressing revenue considerations.

 
Also Read: Interest On Income Tax Refunds: Guidelines and Calculation

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