28% GST On Casinos, Online Gaming To Be Reviewed 6-Months After Implementation

The GST council on Wednesday clarified that it shall review taxation on online gaming, casinos & horse racing in six months from implementation that will be October 1, 2023.

The meeting of Goods and Services Tax (GST) Council, chaired by Finance Minister Nirmala Sitharaman took place via videoconferencing today.

If the review after 6-months of 28% GST on online gaming, casinos necessitates few changes in tax rate or something else, the government shall be able to execute it via a notification and will not require the law to be amended again, said Revenue Secretary Sanjay Malhotra.

"We will introduce a specific provision in the law requiring that registration will be needed for off-shore online gaming. It will be a simple process, asserted the Revenue Secretary.

Earlier, there was demand for a review from states like Delhi and Goa.

The GST Council -- the highest decision making body of the new indirect tax regime that comprises Union Finance Minister and representatives of all states -- discussed the language of amendments that will be needed to enabling taxing online gaming, said Finance Minister Nirmala Sitharaman after the meeting.

The panel's Wednesday meeting was to deliberate on the tax law changes that would be required to implement it, according to a PTI report.

Sitharaman said Delhi finance minister opposed the implementation of the tax on online gaming while Goa and Sikkim wanted the levy on GGR (gross gaming revenue) and not on face value, stated the PTI report.

The new levy, after necessary changes are made in the central and state laws, is expected to be effective from October 1, Sitharaman said.