28% tax on Indian online gambling gaming effective from Oct 1: Finance Minister Nirmala Sitharaman after GST Council meeting on Wednesday - TONTUF Money

The GST Council has decided to levy a 28% GST on online gaming, casinos, and horse racing. The tax will be effective from October 1, 2023.

The decision was met with mixed reactions from the gaming industry. Some companies welcomed the move, saying that it would bring clarity and certainty to the taxation regime for online gaming. Others expressed concerns that the high tax rate would stifle innovation and growth in the industry.

The GST Council has said that it will review the tax rate after six months to assess its impact on the industry.

Here are some of the key points to note about the new GST on online gaming:

• The tax will be levied on the full face value of bets placed, not just on the winnings.
• The tax will apply to all forms of online gaming, including skill-based games, as well as games of chance.
• The tax will be collected by the states where the gaming is taking place.

The new GST on online gaming is likely to have a significant impact on the industry. It will increase the cost of doing business for gaming companies, and it could also lead to higher prices for gamers. However, it is also possible that the tax could help to legitimize the industry and attract more investment.

Only time will tell what the long-term impact of the new GST will be. However, it is clear that the decision has the potential to reshape the online gambling gaming landscape in India.