• Notification Date: 08-07-2023
• Notification No: N/A

GST Council to Levy Tax on Online Gaming on July 11

The 50th Goods and Services Council will discuss the tax rate on online gaming at its meeting on July 11, a top government official has reported.

“The issue has been pending for a long time. It will be taken up by the council. We are clear on the legal stance, but it is difficult to comment on the outcome since it is in the hands of states," the official added. 

A Group of Ministers (GoM) led by Meghalaya chief minister Conrad Sangma could not arrive at a consensus when it submitted its report in December and held on to its earlier position of a 28 per cent tax on the full willing value and not net of margin. 

Stating that the outcome of the deliberations could not be predicted, the official added that it was up to the states. “Some states may even object to increasing the tax, despite the report because of the revenue they garner from online gaming”, the official added. 

The GST Council may also discuss a differential tax treatment with respect to skill based and chance gaming, sources said. 

The Council will also take up the GST Appellate Tribunal, which is likely to be implemented by December 2023.