August 03, New Delhi: Finance Minister Nirmala Sitharaman said on Wednesday that a 28% tax on internet gambling would take effect on October 1. The minister made the declaration during the GST Council meeting on Wednesday.
Despite requests for a review from states like Delhi and Goa, the decision to levy a 28% tax on the entire face value of wagers made on online gaming will go into effect on October 1, according to finance minister Nirmala Sitharaman.
She said after the panel meeting that the GST Council, the highest decision-making body of the new indirect tax system, which is made up of the Union finance minister and representatives of all states, discussed the wording of revisions that would be required to enable taxing online gambling.
The panel had already voted to impose a 28% GST on the entire face value of bets made, and the purpose of the meeting on Wednesday was to discuss the necessary adjustments to the tax code to put this decision into effect.
Sitharaman said that although Goa and Sikkim sought to collect the tax on GGR (gross gaming income) rather than on face value, the finance minister of Delhi opposed the tax on online gaming.
However, Sitharaman said that other states, including Karnataka, Gujarat, Maharashtra, and Uttar Pradesh, wanted the decision made at the last meeting to be carried out.
After the necessary amendments to the federal and state legislation are implemented, the new levy is anticipated to take effect on October 1st, according to her.
After the levy had been in place for six months, she continued, it will be reviewed.(India.Com)
