GST Council: 28% tax on online gaming from October 1
The GST Council has decided to impose a 28% tax on the full face value of bets placed on online gaming and casinos, starting October 1. This decision was made during the 51st council meeting, with plans to review the tax's implementation after six months. While Delhi's finance minister opposed the tax, other states like Karnataka, Gujarat, Maharashtra, and Uttar Pradesh supported its implementation.
Winnings of previous bets redeployed in game won't be taxed
Union Finance Minister Nirmala Sitharaman clarified today that the 28% tax will be applicable on the actual cash paid or equivalent deposits made by players on an online gaming platform or casino. However, the winnings of previous bets or games redeployed by players will not be subjected to tax treatment. The council members also discussed the language of amendments needed for taxing online gaming.
GST hike threatens India's gaming industry
This new tax framework is expected to cause a 350% increase in GST, setting the Indian online gaming industry back several years, according to FIFS and EGF, which represent 50 Indian online gaming companies. However, it will give gaming companies a chance to innovate and rebuild India's gaming foundation. Changes in central and state laws will be required to implement this tax.
