GST Council takes up amendments in law for 28 pc tax on online gaming

New Delhi: The GST Council chaired by Union Finance Minister Nirmala Sitharaman on Wednesday approved amendments in the GST laws to provide clarity on taxation of supplies in casinos, horse racing and online gaming.

Addressing media after the 51st GST Council meeting held through video conferencing, Sitharaman said that the Council today took up law amendments to implement 28% GST on online gaming, horse racing and casinos.

The GST Council in its last meeting had recommended that the actionable claims supplied in casinos, horse racing and online gaming may be taxed at the rate of 28% on full face value, irrespective of whether the activities are a game of skill or chance. The Council had also recommended that the law may be amended to provide clarity in the matter.

The Council in its meeting today also recommended inserting a specific provision in IGST Act, 2017 to provide for liability to pay GST on supplier located outside India supplying online money gaming to a person in India.

The Council approved GST on valuation of supply of online gaming and actionable claims in casinos at entry level.

Sitharaman said that during the meeting, Delhi sought review of decision on online gaming. She said that Sikkim and Goa though were in favour of higher GST but felt that the decision would hurt them.

“Delhi wanted the (decision) on online gaming to go to Group of Ministers (GoM) and therefore dissenting. Goa and Sikkim wanted a higher tax, yes, but on the GGR (gross gaming revenue) possibly whilst the Council had taken in the last meeting that it should be on face value. …only with respect to casinos that is Goa and Sikkim and therefore the decision to amend CGST had these dissenting voices,” Sitharaman said.

She said that because Goa and Sikkim kept appealing on casinos saying they are small states and therefore need to be given consideration, the Council agreed today to come back after six months to review the way in which this is getting implemented.

“When I say six months it’s not six months beginning today. It begins from after when this gets implemented. Six months of implementation will hopefully give us some inputs and also we can share our experiences to see how it is going on,” the Minister clarified.


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