GST Council Meeting 2023 to be held for 51st time today, check details here

The 51st GST Council meeting 2023 is to take place today at 4 pm. Gaming companies have requested the government to revoke the decision to charge 28% GST on online gaming

The 51st GST council meeting is set to be held virtually today, August 2, 2023. Union Minister and the head of the GST council, Nirmala Sitharaman, will chair the meeting. The meeting is scheduled to begin at 4 pm IST.

The GST council announced on its official social media handle that the meeting will take place through video conferencing.

GST council meeting 2023: Overview

The meeting aims to discuss and clarify the GST charge on online gaming. In the 50th GST Council meeting held on July 11, the council decided to levy 28 per cent GST on casinos, race courses, and online gaming. 

Also Read: GST Council to finalise taxing rules on online gaming on August 2

The decision was taken to charge the highest rate on the full face value of the transaction and not the commission.

The GST council in the 50th meeting recommended that:

• In casinos, the GST will be levied on the face value of the chips purchased, 
• In horse racing, the GST will apply to the full value of the bets placed with the bookmaker/totalisator,
• In the case of online games, the charge will apply to the full value of bets placed.

Subsequently, gaming companies and their CEOs showed their concern about the decision saying such a step may hamper the new-age startup growth. They requested the government to revoke the decision.

The All India Gaming Federation (AIGF), which represents companies like GamesKraft, Zupee, Nazara and Winzo, termed the GST council decision as “unconstitutional, irrational, and egregious".

Hence, the government announced the meeting on August 2 to discuss the agenda.

Also Read: GST Council meeting: Delhi FM Atishi to raise issue of tax on online gaming

GST Council Meeting 2023: What to expect?

It is expected that the 51st GST Council meeting might approve a clear definition of actionable claims, and include online money gaming in the definition of online gaming. 

The Nirmala Sitaraman-led council may also define online games as those available on the internet or e-network, including money gaming. The GST council may add "virtual digital asset" in GST law as defined under the IT Act.

In the 51st GST meeting, the council may level up the rules and impose strict measures on gaming/gambling applications and platforms that avoid taxes. The council may ban such apps and platforms or take other strict action.

Also Read: GST mop-up rises 11% to Rs 1.65 trn in July on sustained economic momentum