As of October 1, a 28 percent tax will be imposed on the full face value of bets placed on online games. This decision was made by the GST Council, which includes the Union Finance Minister and representatives from all states, and it is part of the new indirect tax regime.
During the panel meeting, Finance Minister Nirmala Sitharaman stated that there were demands from states like Delhi and Goa to review the decision. Delhi's finance minister opposed the tax on online gaming, while Goa and Sikkim preferred to have the tax levied on gross gaming revenue (GGR) rather than the face value of bets.
On the other hand, several other states including Karnataka, Gujarat, Maharashtra, and Uttar Pradesh supported the implementation of the 28 per cent tax on the full face value of bets, as decided in the previous meeting.
The changes required to enable taxing online gaming were discussed during the meeting, and the new levy is expected to be implemented from October 1, provided the necessary changes are made in both central and state laws.
It's worth noting that there will be a review of the levy after six months of its implementation, which means its impact and effectiveness will be assessed at a later stage.
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