Credit: Twitter
India Finance Minister Nirmala Sitharaman addressed a press conference after the GST Council Meeting on August 2. In her address, Sitharaman stated that the 28% GST on online gaming is expected to be implemented from October 1, 2023. Not only this, but the Finance Minister also said that the GST Act amendment will be addressed in the Parliament and the government will review it after six months of the implementation.
In addition to this, the Revenue Secretary, Sanjay Malhotra said that if the review of the 28% GST implementation on casinos and online gaming requires some change in the tax rate or anything, then the government will be able to do that with a notification and the entire law wouldn’t be required to be amended again.
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According to the Finance Minister, " It (28% GST on online gaming & casinos) is expected to be implemented from 1st October... It is also decided that this decision will be reviewed after six months after it is implemented. When I say six months it does not mean starting from today, it begins after when it is implemented.”
She added, “The council recommended that valuation of supply on online gaming & actionable claims in casinos may be done based on the amount paid or payable or payable to or deposited with the supplier by/or on behalf of the player, excluding the amount entered into the games, bets out of winnings of previous games & not on the total value of each bet placed..."
The Finance Minister said that the decision to levy 28% GST on casinos and online gaming was taken after collecting wisdom. The value of the supply of online gaming will be at the entry-level. In addition, she pointed to a discussion of the council and said that if 28% is charged on GGR, then the net revenue will only be around 10-12%.
