Council unlikely to review 28% GST on online gaming at June 22 meeting
The online gaming sector, which pays 28 percent as goods and services tax (GST) on the full face value involved, will have to wait longer for relief. A much-anticipated review of the levy is unlikely to be discussed at the upcoming GST Council meeting on June 22, according to people close to the matter. The review, initially scheduled to take place after six months from October 1, 2023, was expected to address critical issues surrounding taxation of the burgeoning online gaming industry.
The online gaming industry has been seeking 28 per cent GST on gross gaming revenue (GGR) instead of full face value. Gross gaming revenue (GGR) is the difference between the amount wagered minus the amount won. Full face value is the value of the bet or contest entry amount.
“The council will not address the comprehensive review of online gaming at the upcoming meeting. A review is not needed. There is no need seen at the moment for the review as industry has adjusted well to the higher tax implemented from October 1, 2023. Thus, the review is not part of the agenda in the upcoming council meeting on June 22,” a government official told Moneycontrol.
