The 54th GST Council Meeting reviewed the 28% GST rates on online gaming, casinos, and race courses but opted not to make any changes to the existing tax regime. According to a report, the Council has decided to maintain the status quo, with no revisions to the tax rates for these sectors.
Since October 1, 2023, all bets placed on online gaming platforms and casinos have been subject to the 28% GST, a significant change that sparked discussions within the industry. Previously, many online gaming companies argued for differential tax rates for games of skill versus games of chance, with some platforms not paying the 28% GST on entry-level bets.
The GST Council clarified in August 2023 that online gaming platforms are required to pay 28% GST across the board, and the Central GST law was amended to reinforce this requirement. Additionally, offshore gaming platforms were mandated to register with Indian GST authorities and pay taxes, or risk being blocked by the government.
During GST Council meeting conducted on 9th September, chaired by FM Nirmala Sitharaman and attended by state finance ministers and senior officials, the Council chose not to modify the tax rates. The review of the tax regime comes nearly six months after its implementation, in line with the Council’s previous commitment to reassess the tax burden on the sector.
The decision to maintain the 28% GST rate continues to impact the online gaming industry, with companies adjusting to the increased tax outflows. Offshore platforms remain under scrutiny as the government tightens its enforcement on tax compliance.
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