The clarification comes in the context of some of the states not being able to pass state GST law changes when the new tax regime for online money games kicked in from 1 October as had been decided by the Council, creating some confusion among the industry.
As of now 18 states have passed legislative changes to implement the 28% Goods and Services Tax (GST) on online gaming, horse racing and casinos and all the remaining states have agreed to o make the necessary changes which will have effect from 1 October, Revenue Secretary Sanjay Malhotra said at a briefing.
Speaking to reporters after the GST Council meeting, Malhotra said that the remaining 13 states have agreed to make the necessary legislative changes with effect from 1 October either by amending the state laws or by way of Ordinances. The clarification comes in the context of some of the states not being able to pass state GST law changes when the new tax regime for online money games kicked in from 1 October as had been decided by the Council, creating some confusion among the industry
Finance minister Nirmala Sitharaman told reporters that Delhi state finance minister Atishi brought up the issue of online gaming industry. The Delhi finance minister’s concern was that taxing online gaming platforms at 28% will kill a sunrise industry, Sitharaman told reporters. Earlier in the day, Atishi had said at a virtual briefing that tax notices to the tune of around ₹1.5 trillion issued to online gaming companies should be withdrawn and going ahead with the 28% GST on these companies will bring not only the online gaming industry but also the entire start-up sector in India to its knees. There was no information from the central government about the figure of ₹1.5 trillion. Centre’s position is that it was the Directorate General of GST Intelligence (DGGI), an independent agency, that was issuing the notices. Online gaming platforms have been claiming that the 28% tax will affect their viability.
