The council decided to streamline the definition of SUVs, which attract a 22% cess and a 28% GST rate. Malay Kumar Shukla, secretary of the E-Gaming Federation, called the move “an extremely unfortunate decision as charging a 28% tax on full face value will lead to a nearly 1,000% increase in taxation and prove catastrophic for the industry'. However, industry players expressed their concerns. Simply put, online gaming, horse racing, and casinos will be taxed at 28% and will be taxed on full face value,' Sitharaman said.Īmendments to GST law will be brought to specify that tax will be applicable on the face value of the chips purchased in the case of casinos, on the full value of the bets placed with bookmaker/totalisator in the case of horse racing and on the full value of the bets placed in case of the online gaming, an official statement from the finance ministry explained.
There will be some amendments to GST law. “I am happy to say we have arrived at a decision. In the case of online gaming, horse racing, and casinos, a vexed issue on which ministers consulted extensively, the council recommended amendments to the law to specify a 28% tax on all three categories at their full face value.
