The decision to impose a 28 percent tax on the full face value of bets placed on online games will be implemented from October 1, despite states such as Delhi and Goa demanding a review, Finance Minister Nirmala Sitharaman said on Wednesday.
The GST Council the apex decision-making body of the new indirect tax regime, which consists of the Union finance minister and representatives of all states has discussed the language of adjustments that will be needed to allow online gaming to be taxed, she said after the panel meeting.
At its last meeting, the panel decided to levy 28% GST on the full face value of bets placed, and Wednesday’s meeting was to discuss changes to the tax law that would be necessary to implement it.
Sitharaman said the Delhi Finance Minister is against levy on online gaming while Goa and Sikkim want levy on GGR (gross gaming revenue) and not on face value. However, Sitharaman said other states from Karnataka to Gujarat, Maharashtra and Uttar Pradesh want the decision taken at the last meeting to be implemented.
The new levy, after making required changes in central and state laws, is likely to come into force from October 1, she said. She added that the levy will be reviewed six months after its introduction.
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