New Delhi: The Centre is poised to advocate for the introduction and passage of a bill to amend the GST Act, setting a 28% tax rate on online gaming and casinos. This development follows the approval of two bills by the union cabinet earlier this week.
The proposed amendment in the Central Goods and Services Tax Act aims to establish a 28% GST rate on activities such as horse racing, online gaming, and casinos. This change also necessitates separate amendments to individual GST legislations by the respective states.
Pending the bill’s successful passage, the new tax framework is slated to come into effect from October 1, aligning with the decision reached during a recent GST council meeting earlier this month.
During that meeting, it was agreed upon that the 28% tax rate for online gaming, casinos, and horse racing would take effect starting October 1, subject to a six-month review period. If deemed necessary, adjustments to the tax structure may be made after this assessment.
As the monsoon session of Parliament concludes on Friday, Finance Minister Nirmala Sitharaman is expected to introduce the two bills. If parliamentary proceedings allow, efforts will also be made to secure the passage of these bills.
Given that the gaming industry’s persistent representations prompted the GST council to convene twice within a month, aiming to address concerns about the 28% tax slab on gaming, the bills are likely to be prioritized for passage, considering the planned implementation of the new tax rate on October 1.
