Online Gaming: Online gaming will attract 28% GST. The GST Council, in its 51st meeting recently, has decided to levy 28 percent tax on online gaming and casino initial amount from October 1.
For this, the Central Government will come up with a proposal to amend the Central GST Act in the current monsoon session of the Parliament itself. After that, the way will be prepared for its implementation from October 1 by approving a proposal to this effect in the state assemblies.
It has been decided in the meeting of the GST Council that after six months, i.e. in April, 2024, the imposition of GST on online gaming and casinos will be reviewed. In this, it will be seen whether there is a need to change the rules or not.
The determination of tax will be based on the amount deposited or paid by the player. Re-betting the amount won in the previous game will be excluded. Like if someone bets 1000 rupees and wins 500 rupees. Then the same person bets 1500, then GST will not be applicable on the winning amount.
Under the new rules, foreign gaming companies will also have to get their GST registration done in India. If they do not do this, the government will use the IT Act to ban their website. Online gaming will be defined by amending the GST law.