28% GST on online gaming likely from October 1, decision to be reviewed 6 months after implementation: FM Sitharaman

NEW DELHI: Union finance minister Nirmala Sitharaman on Wednesday said that 28% GST on online gaming will hopefully be effective from October 1, 2023.

Speaking to reporters after the GST Council meeting, Sitharaman said that states like Delhi, Goa, Andhra Pradesh and Sikkim sought a review on the tax during the talks today.
She said that based on these concerns, the Council agreed to review the move 6 months after the implementation of the tax.

She added that the Council has decided to impose the GST on online gaming and casinos at the entry level and not on each bet placed.
The Council, chaired by Union finance minister Nirmala Sitharaman and comprising state ministers, in its last meeting on July 11 approved levying 28 per cent tax on full face value of bets in online gaming, casinos and horse racing.
Subsequently, the Law Committee, comprising Centre and state tax officers, have prepared draft rules for consideration of the GST Council with regard to computation of supply value for tax purposes.
The committee has suggested insertion of a new rule under which value of supply of online gaming would be the total amount deposited with the online gaming platforms by way of money or virtual digital assets on behalf of the player.
With respect to casinos, the committee has proposed that the supply value would be the amount paid by a player for purchase of tokens, chips, coins or tickets.
The council discussed the committee’s recommendations in the virtual meeting on Wednesday.
The All India Gaming Federation (AIGF), which represents companies like Nazara, GamesKraft, Zupee and Winzo, had termed the decision by the GST Council as “unconstitutional, irrational, and egregious”.
(With inputs from PTI)