Even though three states- Delhi, Goa, and Sikkim voiced against the move, the GST Council agreed on Wednesday that 28% GST will be imposed at face value of entry level wagers put on gaming platforms and casinos. Hopefully, this decision will provide some comfort to the online gaming business.In addition to this, the Centre in the current monsoon session of Parliament, will introduce revisions to the Central GST statute, which the States will next adopt in their separate assemblies.According to the information, the tax will come into effect from October 1, 2023 and council will meet again after six months of the implementation of rule. The GST council on July 11 approved to levy the tax of 28% on the full-face value of bets on online gaming, casinos and horse racing.“It (28% GST on online gaming & casinos) is expected to be implemented from 1st October… It is also decided that this decision will be reviewed after six months after it is implemented. When I say six months it does not mean starting from today, it begins after when it is implemented,” said the finance minister.Nirmala Sitharaman further clarified that 28% GST announced by the Council will be applicable on entry level and not the winnings. She further added “The Council will go ahead with its decision to levy the GST on face value.”👉 Recommendations of 51st GST Council Meeting 👉 GST Council recommends certain amendments in CGST Act 2017 and IGST Act 2017, including amendment in Schedule III of CGST Act, 2017, to provide clarity on taxation of supplies in casinos, horse racing and online gaming 👉 GST… pic.twitter.com/iqsEBhUUoK— Ministry of Finance (@FinMinIndia) August 2, 2023According to the press release shared by the Ministry of Finance, “The Council also recommended that valuation of supply of online gaming and actionable claims in casinos may be done based on the amount paid or payable to or deposited with the supplier, by or on behalf of the player (excluding the amount entered into games/ bets out of winnings of previous games/ bets) and not on the total value of each bet placed. The Council recommended that CGST Rules, 2017 may be amended to insert specific provisions for valuation of supply of online gaming and supply of actionable claims in casino accordingly. The Council also recommended issuance of certain notifications/ amendment in notification related to the issue.”
