NEW DELHI: The GST Council on Tuesday decided to levy 28% tax on the face value of “bets placed” on online games, chips purchased at casinos, and bets placed with bookmakers at horse races. The tax on food and beverages sold in cinema halls will be slashed from 28% to 5% GST, which is at par with restaurants. The Council also revised the definition of sports utility vehicles and exempted certain imported medicines and food products used by those suffering from rare diseases. Services of private organizations involved in launching satellites were also exempted from GST.
The gaming industry has expressed distress over the decision, stating that it will wipe them out. However, Finance Minister Nirmala Sitharaman clarified that while the government wants to promote the industry, it cannot promote casinos and online games more than essential goods. The decision to impose a 28% GST on online gaming and casinos was taken after extensive consultation in the GST Council and considering the concerns of states that depend on casinos to attract tourists.
- The GST Council has decided to levy 28% tax on the face value of “bets placed” on online games, chips purchased at casinos, and bets placed with bookmakers at horse races.
- Tax on food and beverages sold in cinema halls will be reduced from 28% to 5% GST.
- The definition of sports utility vehicles has been revised.
- Imported medicines and food products used by those suffering from rare diseases are exempted from GST.
- Services of private organizations involved in launching satellites are exempted from GST.
The decision to impose a 28% GST on online gaming and casinos has ended the difference between “game of chance” and “game of skill”. Industry experts are closely monitoring how the amendment is drafted and whether it will have a retrospective impact. The proposal is expected to significantly contribute to the exchequer and make states like Goa and Sikkim important from a revenue generation perspective.
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