Online gaming could attract 28% GST: top tax official
SUBSCRIBE
JOBS
Go Back
1 year ago 06:00:57am Television

Online gaming could attract 28% GST: top tax official

New Delhi, 19-December-2022, By IBW Team

Online gaming could attract 28% GST: top tax official

India’s Central Board of Indirect Taxes chief Vivek Johri on Saturday said online games where winning is dependent on a certain outcome would attract 28 per cent GST on the full bet value.

Though the report of the Group of Ministers (GoM) on online gaming did not come up for discussion at the GST Council meeting, the department would go by the view that 28 per cent GST is payable on full bet value put in by a player, and not net of margins.

The comments assume significance as the Gameskraft Technology Pvt Ltd (GTPL) GST evasion case is still in the court, a PTI report stated.

Directorate General of GST Intelligence (DGGI) in September issued a show cause notice to Bengaluru-based online gaming company Gameskraft Technology Pvt Ltd (GTPL) for not paying Goods and Services Tax (GST) to the tune of Rs 21,000 crore.

Asked what would be the position of the Central Board of Indirect Taxes (CBIC) since the Council has not decided yet on the GoM report, Johri said the department’s view is that 28 per cent GST is payable on actionable claims arising out of betting or gambling and the tax is to be payable on full value, not net of margins.

“The gaming activity is considered as gambling because the winning is dependent on a certain outcome,” Johri said.

The report of the GoM could not come up for discussions in the GST Council since it came in just two days ahead of the Council meeting and hence could not be circulated to the states. Usually, the GST Council secretariat gives notice to members in the GST Council before tabling any agenda.

Meghalaya Chief Minister Conrad Sangma-chaired Group of Ministers (GoM) had on Thursday submitted its report to Finance Minister Nirmala Sitharaman.

The GoM, in its last meeting in November, had agreed on a 28 per cent GST on online gaming, casinos and horse racing.

However, in absence of consensus on whether the tax should be levied on only the fees charged by the portal or the entire consideration, including the bet amount, received from participants, the GoM had decided to refer all suggestions to the GST Council for a final decision.

Briefing reporters after the GST Council meet on Saturday, Finance Minister Nirmala Sitharaman said the GoM report would be “discussed threadbare” when the Council takes it up for discussion.


Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts

Our Events

  • img
    SatCab Symposium

    SatCab symposium organized by Aavishkar Media Group is an annual event. It's a well-informed event where we have a panel discussion on the current affairs and future forecasting on our industry.

  • img
    BCS
    Ratna Awards

    BCS Ratna Award organized by Aavishkar Media Group is an annual event. In this award function, a community of our industry is honored by receiving the award for the contribution of their work.

  • img
    Chetna Yatra

    Chetna Yatra organized by Aavishkar Media Group is an annual event. Held by Dr. AK Rastogi, Chairman of Aavishkar Media Group. Pilgrimage India in his car for connecting the people of our industry.

  • img
    Imaan India Sammaan

    Imaan India Samman is an event mobilized by Aavishkar Media Group, which was launched in 2012. Giving the award to the NGOs for giving their contribution to society.

Youtube Videos