GST Council recently decided to impose 28% GST on online gaming, casino and race courses.
The GST Council’s decision to impose 28% GST on online gaming has drawn flak from industry players
The GST Council is likely to meet on August 2 via videoconferencing to take a final decision on the 28 per cent GST on online gaming, casinos and race courses, according to media reports.
According to an Indian Express report quoting a senior government official, details regarding the required legal amendment and tweaks in rules will be put up before the Council at the meeting, “there is no backtracking on the proposal”.
According to the report, no proposal on reconsideration on the rate will be tabled. However, the GST Council is expected to resolve whether the 28 per cent GST will be levied on entry value or each bet.
On July 11, the GST Council in its 50th meeting decided to impose a 28 per cent tax on online gaming, horse racing and casino. “Tax will be applicable on the face value of the chips purchased in the case of casinos, on the full value of the bets placed with bookmaker/totalisator in the case of Horse Racing and on the full value of the bets placed in case of the Online Gaming,” the finance ministry had said in a statement on July 11.
The Goods and Services Tax (GST) Council decided to impose the 28 per cent tax based on the recommendation of a group of ministers.
The decision drew flak from the gaming industry terming the decision “disappointing”, “catastrophic”, and “murder”.
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