28% Tax To Be Levied On Bets In Online Gaming From October 1, Govt Says
The government has imposed a 28% tax on bets placed on online gaming. The decision will be implemented starting October 1 even though Delhi and Goa demanded a review of the same, according to Finance Minister Nirmala Sitharaman.
28% tax on bets placed on online gaming
The GST council - the body that oversees the new tax regime - is reviewing the language of amendments that will be required to enable taxing of online gaming, the minister added.
In its last meeting, the panel decided to levy a 28% GST on the full face value of bets placed. The meeting on Wednesday wanted to assess tax law changes that would be needed to enforce the same.
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Sitharaman said that Delhi finance minister opposed the tax while Goa and Sikkim wanted the levy on GGR (gross gaming value) and not on face value. She added, however, that other states including Karnataka, Gujarat, Maharashtra, and Uttar Pradesh want the decision to be implemented.
The new tax will come into effect from October 1 once changes are made in the state and central laws. After six months of implementation, the tax would be reviewed, she added.
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Just last month, India imposed a 28% tax on funds that online gaming companies collect from their customers for each bet, sending ripples across the emerging industry.
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