28 per cent tax on online gaming to become effective from October 1: Finance Minister

Union Minister of Finance Nirmala Sitharaman on August 2 said that the decision to impose a 28 per cent tax on online gaming will come into effect from 1 October. 

She further said that the GST Council will review the implementation of 28 per cent GST on online gaming, casino after 6 months.

The Finance Minister said that states like Delhi, Goa, and Sikkim had sought a review of the 28 per cent online gaming tax that had been decided earlier. 

''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.

Sitharaman also said that for the purpose of GST levy, the valuation of the supply of online gaming and casinos will be done based on the amount paid or deposited with the supplier, excluding the winning amount in the bet.

Sitharaman added that the valuation of online gaming and casino supplies for the purposes of the GST duty will be based on the sums paid to or deposited with the supplier, excluding the sums won from bets.

Earlier on July 11, the GST Council had decided to impose a 28 per cent tax on the turnover of online gaming companies, horse racing, and casinos.

Besides this, GST Council had also decided to exempt cancer-related drugs, medicines for rare diseases, and food products for special medical purposes from GST tax.

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