29 C
Lahore

Amendment To GST Act On Online Gaming In Parliament Monsoon Session

Date:

Share:


Parliament’s Monsoon Session will begin on July 20 and end on August 11, 2023.

New Delhi:

Revenue Secretary Sanjay Malhotra today said the central government will bring clarificatory amendments to the GST Act in the monsoon session of Parliament to implement GST Council’s decision of imposing 28 per cent tax on online gaming, casino and horse racing.

The monsoon session will begin on July 20 and end on August 11, 2023.

“It will be our effort to draft the law and introduce it in Parliament and get it passed in the monsoon session,” he told Press Trust of India in an interview.

The implementation takes effect only when state legislatures have also passed amendments in state GST laws, he said, adding, that it will take some time.

“This is a clarificatory amendment. It has been our view that online games for stakes depend on outcomes…whether game of skill or game of chance. The Council has only reiterated and confirmed that view that these games are taxable at 28 per cent on the full face value or the payment which is made to the online gaming platform,” he said.

So in that sense it is not retrospective, he added.

The online gaming companies, however, have been paying tax at lower rates on Gross Gaming Revenue (GGR) which works out to be less than 5 per cent which is applicable on food, he said.

The Goods and Services Tax (GST) Council in its meeting on Tuesday decided to impose a 28 per cent tax on the turnover of online gaming companies, horse racing and casinos.

The tax rate was decided based on the recommendation of a group of ministers that looked at taxing casinos, horse racing and online gaming. The issue before the GoM (group of ministers) was whether to impose a 28 per cent GST on the face value of bets, or gross gaming revenue, or just on platform fees.

The GST Council decided to impose tax on the entire value.

The tax on online gaming companies would be imposed without making any differentiation based on whether the games required skill or were based on chance.
 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)



Source link

Subscribe to our magazine

━ more like this

World Cup 2023: Which record can Shaheen Afridi break during mega event?

Pakistan's ace fast bowler Shaheen Afridi could break another record during the ICC Men's World Cup 2023, slated to kick start on October...

Tammy Beaumont, Harry Brook named PCA Players of the Year

Beaumont, winner of the women's award in 2016, collected the accolade for a second time after a stellar summer in which she broke...

Hitler’s birth house will become a police station to keep neo-Nazis away

Comment on this storyCommentAustria has started work to turn the yellow-brick house where Adolf Hitler was born into a police station, in a...

Overheard on NBA media day: New-look Bucks, LeBron’s understudy and … a green alien?

The 2023-24 NBA season is just weeks away, and as the players and coaches prepare for training camp, our NBA insiders are breaking...

Liverpool predicted lineup vs Union Saint-Gilloise – Europa League

Jurgen Klopp will not be wanting his Liverpool players to dismiss or forget the injustice that occurred at Tottenham on Saturday, but to...
spot_img