Union Finance Minister Nirmala Sitharaman has clarified that the 28% Goods and Services Tax (GST) leviable on online gaming, gambling, and horse-racing will be imposed on the initial buy-in, and not on winnings. Sitharaman further said that all attempts are made to pass the required legislation in Parliament and state assemblies so that the new rates can be implemented from 1 October.
This decision came after the council’s upward revision of the tax that caused a concern among the players who felt the rate was too high and would hurt the industry.
The meeting held on Wednesday was held via videoconferencing to discuss the decisions taken regarding tax on online gaming, gambling, and horse racing during its previous meeting on 11 July. The Finance Minister declared that the 28 percent rate would be applicable on the “face value”.
The recent development took place after the online gaming and gambling industry raised their concerns about whether the 28% GST would be applicable not only to the initial buy-in but also winnings, thus leading to double taxation.
The states also voiced their concerns at the meeting on Wednesday.
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