The infamous 28 per cent tax on online gaming, casino and horse racing has been continued by the Goods and Services Tax(GST) Council on Wednesday. According to a statement by the Union finance minister Nirmala Sitharaman.
The 28 percent tax on gaming will come into effect from October 1 and the Council will meet after six months to review its success from the date of implementation.
The decision to impose a 28 per cent tax on online gaming was taken up in a July 11 meeting, chaired by FM Sitharaman and included several state ministers. The 28 per cent tax will be imposed on the full face value of bets in casinos, horse racing and online gaming.
FM Sithraman added that during the meeting several states like Goa, Delhi and Sikkim have sought a review of the 28 per cent online gaming tax.
"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.
FM Sitharaman also clarified that the 28 per cent tax will be implemented on the entry-level registration and not on the winnings. She also added that the council will go ahead with its decision of implementing the GST on the face value of the game.
Several gamers, mostly from Tier II and Tier III cities under the banner of ‘Indian Gamers United’ have written a letter to FM Nirmala Sitharaman stating that higher taxes on games will push gamers to offshore gaming where there are no taxes but very high risks.
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