 "Nirmala Sitharaman")
The GST Council on July 11 decided that online gaming is an actionable claim, like the lottery, on which a 28 per cent tax is to be levied.
The finance ministry on Tuesday said there are sufficient enforcement provisions in GST laws to take action against offshore gaming platforms, which default in paying taxes.
The GST Council on July 11 decided that online gaming is an actionable claim, like the lottery, on which a 28 per cent tax is to be levied.
Minister of State for Finance Pankaj Chaudhary informed the Lok Sabha that some representations have been received from stakeholders that the council’s decision will prompt online gaming platforms to shift to offshore locations.
“Sufficient enforcement provisions exist to take action against offshore platforms, which do not pay prescribed GST,” Chaudhary said in a written reply.
The GST Council’s decision to levy a 28 per cent tax on the full face value of bets on online gaming companies is based on the recommendation of a Group of Ministers (GoM) on the issue.
The council is scheduled to meet virtually on Wednesday to decide on the manner in which the supply value will be determined for the purpose of levy of Goods and Services Tax (GST).
It is proposed that the value of the supply of online gaming will be the total amount paid/deposited on behalf of the player.
In addition to online gaming, the council is also likely to decide that in the case of casinos, the value of supply will be the total amount paid by the player for the purchase of tokens, chips, coins or tickets.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: Aug 01 2023 | 3:48 PM IST