Decision to impose 28% tax on online games to be implemented from October 1: FM Nirmala Sitharaman
Finance minister Nirmala Sitharaman has said that the decision to impose a 28 per cent tax on the full face value of bets placed on online games will be implemented from October 1, 2023 even though there was demand for a review from states like Delhi and Goa. The GST Council -- the highest decision making body of the new indirect tax regime that comprises Union finance minister and representatives of all states -- discussed the language of amendments that will be needed to enabling taxing online gaming.
Sitharaman said Delhi finance minister opposed the levy of the tax on online gaming while Goa and Sikkim wanted the levy on GGR (gross gaming revenue) and not on face value. Sitharaman, however, said other states ranging from Karnataka to Gujarat, Maharasthra and Uttar Pradesh wanted the decision taken at the last meeting to be implemented.
The minister said the new levy, after required changes are made in the central and state laws, is likely to come into effect from October 1. She added that there would be a review of the levy after six months of its implementation.
