GST council postpones review of 28% levy on online gaming
The Goods and Services Tax (GST) council on Tuesday postponed the review of the 28% levy imposed on the proceeds from online gaming, news platform NDTV Profit reported. The 28% tax on online gaming was implemented on October 1, 2023, and was scheduled to be reviewed after six months, but the people with knowledge of the matter have informed that this might be taken now after the Lok Sabha elections 2024.
The postponement comes after the Revenue Secretary's remarks last month, who said that the six-month period will be over by March 31, so the issue will be not decided in the next meeting, but after the completion of the deadline. “A review does not necessarily mean that we change the rates. A review is only to take stock and see if anything needs to be done," Revenue Secretary Sanjay Malhotra told Moneycontrol.
In its October meeting, the GST Council decided to impose a 28% levy on online gaming, casinos, and horse racing. The taxes that were levied on the full face value increased the government revenue fourfold from the sector.
