The GST Council has decided to impose a 28 percent GST on the full value of online gaming, horse racing, and casinos. This means that the tax will be applied to the entry fee and any winnings, regardless of whether the game is considered a game of skill or chance.
The decision was made during the GST Council’s 50th meeting, which was held on July 11, 2023. The decision was made by a Maharashtra GST member, who reiterated it shortly after it was confirmed by West Bengal’s MoS Finance Chandrima Bhattacharya.
The 28 percent GST will be applicable on all three categories of games, starting from July 25, 2023.
The decision has been met with mixed reactions from the gaming industry. Some industry representatives have welcomed the decision, saying that it will bring clarity and certainty to the taxation of online gaming. Others have expressed concerns that the high tax rate will stifle the growth of the industry.