Online gaming, casino, horse racing to soon attract 28% GST
A 28% GST will soon be levied on online gaming, casinos, and horse racing, following a unanimous decision by a Group of Ministers.Summary
A Group of Ministers (GoM) chaired by Meghalaya chief minister Conrad Sangma has unanimously agreed to impose a 28% Goods and Services Tax (GST) on casino, racetrack, and internet gaming services. Currently, these services are taxed at 18%. The GoM finalized the valuation technique for these services to implement the tax and will submit its report to the Finance Minister Nirmala Sitharaman for discussion at the next GST Council meeting. Industry experts, like Ankur Gupta of SW India, express concern that this increase will negatively impact Indian game companies, as most countries tax online gaming at around 18%. Trivikraman Thampy of Games24x7 warns that the higher tax could drive operators offshore and reduce government revenue. The online skill-based gaming industry, employing approximately 45,000 people, has petitioned the government to maintain the current GST rate, arguing that the sector’s growth benefits numerous other industries.
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