Team Blitz India
NEW DELHI: The all-powerful Goods and Services Tax (GST) Council on July 11 approved the imposition of a uniform 28 per cent tax on full “face value” of bets involving online gaming, casinos and horse racing. This will bring them on a par with betting and gambling. Industry stakeholders had been arguing that games of skill be treated differently from games of chance for tax purposes.
The effective tax rate on online gaming will be rolled out after amendments to the GST law. “Will bring an amendment to the GST law to include online gaming and (it) will be taxed at 28 per cent on full face value,” Finance Minister Nirmala Sitharaman said here.
The Council also decided to lower the service tax levied on food and beverages consumed at cinema halls to 5 per cent from 18 per cent, and tweaked the definition of Sports Utility Vehicle (SUV) for levying a cess over and above the GST rate.
Currently, most online gaming platforms pay an 18 per cent tax on the commission collected for each game. Those involved in betting or gambling attract 28 per cent GST. For horse racing, GST is levied at 28 per cent on the bet value.
