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Govt stands firm on its decision to levy 28% GST on e-gaming, casinos

The government officials clarified that so long as money is involved in a game, govt will make no distinction between a game of skill and a game of chance

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The government officials clarified that so long as money is involved in a game, govt will make no distinction between a game of skill and a game of chance

BS Web Team New Delhi

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The government officials have clarified that the proposed 28 per cent goods and services tax (GST) on online gaming and casinos is here to stay, The Times of India (ToI) has reported. Adding on the subject, government sources told the newspaper that levying the tax on the gross value is the way ahead since using any other method leaves the scope for complications in businesses that lack transparency.

As for the gaming industry, companies operating in the online gaming space have been seeking a review from the government. These companies have argued that the imposed tax is too high and will hurt business. However, government sources told ToI that the decision was well-thought and unanimous with all states and the centre on the same page. GST Council is a body that comprises finance ministers of all states along with the union finance minister and has the final say in matters pertaining to rules regarding GST.
 

Talking about the imposed GST, a govt official was quoted in the report as saying, "Do you want us to deploy an inspector at every table to calculate the earnings of an individual in a casino or see how much cold drink is being consumed at what price? Just like casinos, online gaming is also an opaque business where it is very difficult to break up things and undertake the calculations."

Making arguments about the nature of the online business, the officials said that tax 'sin goods' should be heavily taxed as young children are prone to getting into these games and spending a lot of money. The officials also clarified that so long as money is involved in a game, govt will make no distinction between a game of skill and a game of chance.

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First Published: Aug 01 2023 | 2:32 PM IST

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