Govt to levy 28 per cent GST on online gaming, casinos from October 1: Sitharaman
Aug 02, 2023
New Delhi [India], August 3 : Union Finance Minister Nirmala Sitharaman said on Wednesday that the 51st GST Council meeting 28 per cent GST on online gaming and casinos is expected to be implemented from October 1.
"It (28 per cent GST on online gaming & casinos) is expected to be implemented from 1st October," Nirmala Sitharaman said.
The 51st GST Council meeting was held on Wednesday. It was presided by Union Finance Minister Nirmala Sitharaman. The council also recommended the valuation of supply on online gaming should be done on the amount paid or payable or payable to or deposited with the supplier on behalf of the player.
"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.
It is also decided that this decision will be reviewed after six months after it is implemented. The time frame for this would start from the time it is implemented, the Finance Minister clarified.
"When I say six months it does not mean starting from today, it begins after when it is implemented," Sitharaman said.
Earlier, at a July 11 meeting, the GST Council decided to levy a uniform 28 per cent tax on full face value for online gaming, casinos and horse racing.
A Group of Ministers (GoM) was earlier constituted to look into the issues related to taxation on casinos, horse racing and online gaming. The GoM submitted its first report in June 2022 and it was placed before the GST Council in its 47th GST Council meeting wherein, it was decided that the GoM may relook into all the issues once again.
The GoM submitted its report and it was placed before the recently held 50th GST Council meeting. The GoM, in its second report, recommended that since no consensus could be reached on whether the activities of online gaming, horse racing and casinos should be taxed at 28 per cent on the full-face value of bets placed and left it on the GST Council to decide.
