GST Council to Review 28% Tax on Online Gaming: Find Out When
The Goods and Services (GST) Council recently announced that it will be reviewing the 28% tax levied on online gaming and casinos, six months after its implementation beginning October 1, 2023. This decision was made during the council’s 51st meeting, which took place virtually on August 2.
During the meeting, the finance minister stated that the decision to review the tax was nearly unanimous, with only a few states expressing opposition. The finance minister of Delhi was one of those who opposed the levy of the tax on online gaming. Additionally, the states of Goa and Sikkim suggested that the tax should be imposed on the gross gaming revenue (GGR) rather than on the face value.
This development has had an impact on Delta Corp, a major player in the online gaming industry, as their share price has plummeted by more than 25% over the past month. Year-to-date, the stock is down by 11%. The uncertainty surrounding the taxation rate on online gaming has likely contributed to this decline.
The decision to review the tax on online gaming reflects the GST Council’s willingness to reconsider its policies based on feedback from various stakeholders. This move could have far-reaching implications for the online gaming industry, as a revised tax rate or basis of taxation could significantly impact the profitability of companies operating in this sector.
It is worth noting that the inclusion of various perspectives and opinions is crucial in promoting a balanced view of the topic. The opposition from Delhi, as well as the suggestions from Goa and Sikkim, highlight the differing viewpoints regarding the taxation of online gaming.
Overall, the GST Council’s decision to review the 28% tax on online gaming demonstrates a willingness to adapt and refine tax policies based on feedback from concerned parties. The impact of this decision on the online gaming industry remains uncertain, but it will undoubtedly be closely monitored by industry players and investors alike.
As more information becomes available regarding the review of this tax, industry experts and stakeholders will be keeping a close eye on the developments. The outcomes of the review could potentially shape the future of the online gaming sector and its taxation structure.
