28% tax on online gaming to become effective from October 1, finance minister Nirmala Sitharaman announced on Wednesday.
“…The council recommended that valuation of supply on online gaming & actionable claims in casinos may be done based on the amount paid or payable or payable to or deposited with the supplier by/or on behalf of the player, excluding the amount entered into the games, bets out of winnings of previous games & not on the total value of each bet placed…”, the minister announced at the briefing after the meeting.
The finance minister said Delhi finance minister opposed the levy of the tax on online gaming while Goa and Sikkim wanted the levy on GGR (gross gaming revenue) and not on face value.
The panel had at its last meeting decided to levy a 28 per cent GST on full face value of bets placed and Wednesday’s meeting was to deliberate on the tax law changes that would be required to implement it. She added that there will be a review of the levy after six months of its implementation.