Finance Minister (FM) Sitaraman has agreed to revisit the decision with a review after six months, regarding the implementation of 28% GST Goods and Services Tax (GST) on online gaming and casinos.
Sitaraman stated that the Goods and Services Tax Council has finalized the modalities for determining the valuation in the online gaming and casino industry by imposing a 28% tax rate during their meeting on Wednesday.
During a press conference in New Delhi, Sitaraman said, “The GST Council is agreeable to reviewing the situation six months after 1st October 2023.”
He clarified that the taxable amount for the operator, excluding the wagering value or total value (stake plus winnings) of action-worthy claims in casinos, can be based on the amount paid or deposited.
He made it clear that the 28% GST would be levied not on each bet or win but on the entry level (the amount deposited on online platforms).
“The ministers representing Delhi wanted a review of the 28% GST decision on online gaming (at the stake value). Goa and Sikkim also shared that their revenue has been affected by this decision. Goa appealed that the tax should be levied on the total gaming revenue (GGR) and not on the stake value. Sikkim requested a reconsideration of the decision on casinos,” Sitaraman said.
In a virtual meeting chaired by Sitaraman, the GST Council members approved the proposed changes in the GST law.
During the meeting on 11th July, the GST Council decided to impose a uniform 28% tax rate on online gaming, casinos, and horse racing based on the total stake value.
“The FIFS and IIF, representing 50 Indian online gaming companies, appreciate the government’s address of the industry’s concerns regarding repetitive taxation. With the new tax structure, uncertainties will be clarified, and there will be a significant 350% increase in GST, providing an opportunity for the Indian online gaming industry to rejuvenate and rebuild,” said the Federation of Indian Fantasy Sports and E-Gaming Federation in response to the 51st GST Council meeting.
A group of ministers (GoM) was formed to address issues related to taxation on casinos, horse racing, and online gaming. The GoM presents…