In a major setback to the growth of the gaming industry in India, the GST Council affirmed the 28% levy to be imposed on bets made in online gaming casinos and horse racing from October 1. Though the decision to impose levy was in the limelight for over a month, the GST Council confirmed its imposition in its ongoing meet on Saturday. As a bit of a relief for the gaming platforms, the new tax won't be retrospective in nature, i.e., the new provision will come into effect from October 1 only and not for the period before it.
Union Finance Minister Nirmala Sitharaman said that the decision was taken in the context of rising concerns over the gaming industry, as flagged by Delhi's and Goa's Finance Ministers. However, Delhi's Chief Minister is reported to have said that tax notices are being sent for a much higher amount than the estimated valuation of the gaming industry, implying his disagreement with the Centre's move.
Other states too are not in line with this decision, with Ministers calling it a measure to kill the rising industry.
The needed proposal for amendments were passed during the final monsoon session of the Lok Sabha, with the primary aim of introducing a 28% GST for online gaming casinos, and horse racing. The two amendments made were Integrated Goods and Services Tax (Amendment) Bill, 2023 and the Central Goods and Services Tax (Amendment) Bill, 2023.
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