The GST Council will review the implementation of 28 per cent tax on online gaming, casinos six months after it comes into effect from October 1.
The GST Council will review the implementation of 28 per cent tax on online gaming, casinos six months after it comes into effect from October 1.
PremiumThe Goods and Services (GST) Council in its 51st meeting held virtually on August 2 decided that it will review the 28 per cent tax levied on online gaming, casinos, six months after it comes into effect from October 1, 2023. Finance Minister Nirmala Sitharaman-led meeting announced that the decision taken in the 50th GST Council to levy 28 per cent tax on online games will be implemented from October 1.
The finance minister said that the decision near-unanimous as a handful of states opposed the decision. The Delhi finance minister opposed the levy of the tax on online gaming. Also, Goa and Sikkim wanted the tax levied on the gross gaming revenue (GGR) and not on the face value.
However, other states ranging from Karnataka to Gujarat, Maharashtra and Uttar Pradesh wanted the decision taken at the last meeting to be implemented.
FM Sitharaman said in a post-meeting press conference, ''The council recommended that valuation of supply on online gaming and actionable claims in casinos may be done based on the amount paid or payable or payable to or deposited with the supplier by/or on behalf of the player, excluding the amount entered into the games, bets out of winnings of previous games and not on the total value of each bet placed..."
E-Gaming Federation (EGF) and Federation of Indian Fantasy Sports (FIFS) issued a joint statement after the 51st GST Council meeting outcome.
''EGF and FIFS which represent 50 Indian online gaming companies, appreciate the government addressing the industry's concerns on the issue of repeat taxation. The new tax framework, while clarifying and resolving uncertainty, will lead to a very burdensome 350 per cent increase in GST and set the Indian online gaming industry back several years. However, it will allow gaming companies a fighting chance to innovate and rebuild the foundation of gaming in India."