Despite the report of the Group of Ministers (GoM) on online gaming did not come up for discussion at the GST Council, the department decided to go by the view that 28 per cent GST is payable on full bet value put in by a player, and not net of margins.

The comments assume significance as the Gameskraft Technology Pvt Ltd (GTPL) GST evasion case is still in the court.

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In September, the Directorate General of GST Intelligence (DGGI) issued a show cause notice to Bengaluru-based online gaming company Gameskraft Technology Pvt Ltd (GTPL), for not Goods and Services Tax (GST) to the tune of ₹21,000 crore.

Answering a question on the position of the CBIC position since the Council has not decided yet on the GoM report, Johri said the department's view is that 28 per cent GST is payable on actionable claims arising out of betting or gambling and the tax is to be payable on full value.

"The gaming activity is considered as gambling because the winning is dependent on a certain outcome," Johri said.

Since the report of the GoM came in just two days ahead of the Council meeting, it could not be circulated to the states. Usually, GST Council secretariat gives notice to members in the GST Council before tabling any agenda.

On Thursday, Meghalaya Chief Minister Conrad Sangma chaired Group of Ministers (GoM) submitted its report to Finance Minister Nirmala Sitharaman.

In November, the GoM had agreed on a 28 per cent GST on online gaming casinos and horse racing.

Though the absence of consensus on whether the tax should be levied on only the fees charged by the portal or the entire consideration, including the bet amount, received from participants, the GoM had decided to refer all suggestions to the GST Council for a final decision.

Finance Minister Nirmala Sitharaman on 17 December said the GoM report would be "discussed threadbare" when the Council takes it up for discussion.