New Delhi: The central government has decided to retain 28% Goods and Services (GST) on online gaming and casinos and it is likely to be implement from October 1.
Union Finance Minister Nirmala Sitharaman said that the GST Council will review the taxation after six months from the date of implementation. This was decided at the 51st meeting of the council held virtually on August 2.
The Council, chaired by Sitharaman and comprising state ministers, in its last meeting on July 11 approved levying 28% tax on full face value of bets in online gaming, casinos and horse racing. The decision has been opposed by a handful of states.
While Delhi finance minister opposed the levy of the tax on online gaming, Goa and Sikkim want the tax to be levied on the gross gaming revenue (GGR) and not on the face value. ‘’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..,” Sitharaman said in a post-meeting conference.
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