The GST Council on Tuesday agreed to levy a 28% tax on online gaming, casinos, and horse racing. The tax would be levied at full face value.
“GST Council has decided that online gaming, casinos, and horse racing will be taxed at 28 % at the entry point on the full face value of bets,” West Bengal finance minister Chandrima Bhattacharya said told the media. The minister said that changes will be made in the GST law to state that these three supplies are not actionable claims, like that of lottery and betting.
Maharashtra forest cultural and fisheries minister Sudhir Mungantiwar said the council has decided to do away with the distinction of the game of skill and chance in the case of online gaming.
Reacting to the announcement, IndiaPlays COO aid Aaditya Shah said, “The implementation of a 28% tax rate will bring significant challenges to the gaming industry. This higher tax burden will impact companies’ cash flows, limiting their ability to invest in innovation, research, and business expansion. There is a fine line between skill-based games and casinos/betting apps, and they must not be treated the same way; a levy of an 18% tax rate would have been helpful for the gaming industry”.
