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Gst On betting services

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AKASH RAWAT

ACCOUNTANT

35 Points Posted on 05 July 2021

A party has giving services like betting service i.e dream 11,my 11 is this kind of service gst is applicable ??

Replies (3)

Quick Summary

This discussion explores the applicability of GST on betting and online gaming services, such as Dream11. While courts often deem these games as skill-based rather than pure betting, the exact threshold for 'skill' remains undefined. GST is generally applicable to betting, lottery, and gambling at a rate of 28% on the total stake value, not just the service fee. Recent tax demands, like the one issued to GamesKraft, highlight the significant financial implications.

CA Altamush Zafar

GST Consultant

10402 Points Posted on 05 July 2021

Courts are of the opinion that these games involves skill therefore it is not betting.
But how much skill is not betting it's not yet litigated.
Otherwise from that GST is applicable on betting, lottery and gambling.

AKASH RAWAT

ACCOUNTANT

35 Points Posted on 05 July 2021

What is gst rate on gambling?

Sravan Yelagandula

Employee

73 Points Posted on 13 December 2022

GST is computed on gross gaming value or stake instead of the gross gaming revenue (total collection minus winnings distributed) or service fee. Hence, a 28% GST is charged and collected on betting and gambling under the HSN code 999692 on the total stake or bet value.

GST intelligence wing recently issued a show cause notice to a Bengaluru-based online gaming portal GamesKraft Technologies Pvt Ltd demanding ₹21,000 crore in taxes, interest and penalty.