Finance minister Nirmala Sitharaman said that the decision will be reviewed in 6 months after implementation by GST Council.
The Goods and Services Tax, GST Council, in its 51st meeting via videoconferencing on Wednesday (August 2), has decided 28% tax on online gaming to become effective from October 1.
In the meeting finance minister Nirmala Sitharaman said, “The valuation may be done based on the amount paid or payable or deposited with the supplier by or on behalf of the player, excluding the amount entered into games bets out of winnings of previous games and bets and not on the total value of each bets placed. Entry (level) whatever they pay to get chips and not what they pay in each game.”
She added that there will be a review of the levy after six months of its implementation.
Delhi 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.
Other states such as Chhattisgarh, West Bengal, Maharashtra, Uttar Pradesh, Himachal Pradesh, Maharashtra, Gujarat, Karnataka, Bihar asked the Council to implement its decision from the last meeting at the earliest.
The Centre will bring amendments to the Central GST law in the ongoing monsoon session of Parliament, following which states will pass the amendments in their respective assemblies to pave the way for introduction of changes in law by October 1.
