India Imposes 28% GST on Online Money Gaming from October 1st

• Implementation of 28% GST: Currently, 18 states in India have passed legislative changes to implement a 28% Goods and Services Tax (GST) on online gaming, horse racing, and casinos. This change is set to take effect from October 1st.

• Remaining States Agreed: The remaining 13 states have also agreed to make the necessary legislative changes by October 1st, either by amending state laws or through ordinances.

• Background: This clarification was needed because some states faced challenges in passing the necessary GST law changes when the new tax regime for online money games was scheduled to begin on October 1st, causing confusion in the industry.

• Delhi Finance Minister's Concern: During a GST Council meeting, Delhi's finance minister, Atishi, expressed concerns about the 28% tax rate for online gaming platforms. She believed that such high taxation could harm this emerging industry.

• Withdrawal of Tax Notices: Atishi argued that tax notices worth around ₹1.5 trillion issued to online gaming companies should be withdrawn. She suggested that proceeding with the 28% GST rate would not only negatively impact the online gaming industry but also harm the entire startup sector in India.

• Central Government's Position: The central government did not confirm the ₹1.5 trillion figure. It clarified that the Directorate General of GST Intelligence (DGGI), an independent agency, issued these notices. Online gaming platforms have been claiming that the 28% tax rate would make their operations less viable. Source : https://www.livemint.com/economy/all-states-for-28-gst-on-online-money-gaming-effective-from-1-october-revenue-secy-sanjay-malhotra-11696698832721.html