28% GST on online gaming from October 1

New Delhi, August 2

Despite Delhi, Goa, Sikkim expressing dissent, the GST Council which met virtually on Wednesday approved 28 per cent GST on full face value for online gaming, casinos and horse racing which will be implemented from October 1.

“The GST Council agrees to come back with a position review after six months from October 1, 2023,” Sitharaman told the mediapersons after the conclusion of the meeting.

Sitharaman said the decision to levy a 28 per cent tax on casinos and online gaming was taken after collective wisdom. The value of supply of online gaming and actionable claim in casinos will be at the entry level, she said.

The minister said the net revenue will be only 11-12 per cent if gross gaming revenue (GGR) is taxed at 28 per cent. The current 18 per cent GGR results in net 8-9 per cent in terms of revenue, she pointed out. The amendment to GST Act will be taken up in this Parliament session, she added. “There will be a specific provision in the law requiring that registration will be needed for off-shore online gaming. It will be a simple process,” said Revenue Secretary Sanjay Malhotra.

West Bengal, Bihar, Chhattisgarh, Uttar Pradesh, Himachal Pradesh, Maharashtra and Gujarat had bolstered the Centre’s case by seeking the implementation of 28 per cent GST at the earliest. Delhi’s representative Atishi wanted the 28 per cent tax rate on online gaming reviewed as did Sikkim and Goa sought reconsideration of the levy on casinos.