GST Council meeting | 28% tax on online gaming to be implemented from October 1: Sitharaman
The Hindu
Finance Minister Nirmala Sitharaman said that the October 1 date of implementation will be followed despite different State Ministers expressing concerns, and requesting reviews
Finance Minister Nirmala Sitharaman, following a meeting of the GST Council on August 2 said that the decision to impose a 28% tax on full face value of bets placed on online games will be implemented from October 1, and the policy may be reviewed six months from implementation.
Addressing a press conference, following the meet, Ms. Sitharaman said that the council in its last meeting had taken a decision on taxing all betting and gaming related activities, casinos, horse racing, after three full years of Ministerial group looking at the issue.
“It was decided to tax them at 28% on the full face value. Today, the meeting had a specific agenda of what amendments have to be made to the GST law.”
Ms. Sitharaman said that the October 1 date of implementation will be followed despite different State Ministers expressing concerns, and requesting reviews.
“Minister from Delhi wanted the whole thing reviewed and asked for it to be sent back to the GoM...Then Goa and Sikkim who had interests in casinos, also felt the decision taken last time hurts their interests, although they agreed on the higher levy of 28%, but to be levied on the gross gaming revenue rather than the face value,” she said adding that both Goa and Sikkim also wanted a reconsideration on casinos.
The Finance Minister informed that the Tamil Nadu Finance Minister had urged her in a letter to make sure that their concerns are taken on board. Since the State has banned online games, he was apprehensive if the 28% tax will dilute or undermine the ban, she said.
“There were other Ministers from States like Chhattisgarh, Karnataka, West Bengal, Bihar and Uttar Pradesh, who felt that we had already discussed this issue for a long time and the last meeting’s decision should be implemented at the earliest. Maharashtra and Gujarat also joined in this group.”