EXCLUSIVE: 28% GST on online gaming set to be proposed this week
Finance ministers from seven states will meet later this week to finalise the levy of goods and service tax on the sector.
- Jul 18, 2022,
- Updated Jul 18, 2022 1:22 PM IST
In a move that is expected to hit the online gaming industry in India, finance ministers from seven states will meet later this week to finalise the levy of goods and service tax on the sector.
The proposal before the ministers is to bring the taxation on online gaming in India on par with betting and gambling, which already attract a 28 per cent GST levy.
"The group of state finance ministers is meeting at Bengaluru on 23 July to finalise GST on online gaming”, a government functionary told Business Today Television.
The proposal of the group of state finance ministers will be considered by the federal GST Council headed by finance minister Nirmala Sitharaman.
The group of state finance ministers will also consider a proposal to levy the 28 per cent levy on the entire face value or the bet amount in an online game, and not the net amount after deducting prize money.
In the case of casinos, it has been decided that the levy should be on the amount paid at the entry point – that is while purchasing chips, and not on every transaction.
In the case of horse racing, the existing practice of levying 28 per cent GST on the entire bet amount is proposed to remain.
The state finance ministers group is headed by Conrad Sangma, the chief minister of Meghalaya.
The meeting is also scheduled to be attended by the finance ministers of Goa, Uttar Pradesh, Gujarat, Tamil Nadu and Maharashtra, and revenue officials from Telangana.
Also read: GST on online gaming yet to be finalised; GoM to submit report in Aug
In a move that is expected to hit the online gaming industry in India, finance ministers from seven states will meet later this week to finalise the levy of goods and service tax on the sector.
The proposal before the ministers is to bring the taxation on online gaming in India on par with betting and gambling, which already attract a 28 per cent GST levy.
"The group of state finance ministers is meeting at Bengaluru on 23 July to finalise GST on online gaming”, a government functionary told Business Today Television.
The proposal of the group of state finance ministers will be considered by the federal GST Council headed by finance minister Nirmala Sitharaman.
The group of state finance ministers will also consider a proposal to levy the 28 per cent levy on the entire face value or the bet amount in an online game, and not the net amount after deducting prize money.
In the case of casinos, it has been decided that the levy should be on the amount paid at the entry point – that is while purchasing chips, and not on every transaction.
In the case of horse racing, the existing practice of levying 28 per cent GST on the entire bet amount is proposed to remain.
The state finance ministers group is headed by Conrad Sangma, the chief minister of Meghalaya.
The meeting is also scheduled to be attended by the finance ministers of Goa, Uttar Pradesh, Gujarat, Tamil Nadu and Maharashtra, and revenue officials from Telangana.
Also read: GST on online gaming yet to be finalised; GoM to submit report in Aug