Government of India Announces 28% GST on Online Gaming During GST Council Meet

During the 2023 GST Council Meet, the government of India took the decision to levy 28% GST on online gaming. This tax bracket includes online gaming, horse racing, casinos, etc. Finance Minister Nirmala Sitharaman confirmed that the tax is applicable, but not limited to lottery and betting.

Nirmala Sitharaman announces 28% GST on online gaming

In the 50th GST Council Meeting, the finance minister also established that online gaming isn't about chance or skill. She said: 

"GST Council has decided that online gaming, casinos and horse racing will be taxed at 28 percent at entry point on full face value of bets."

Sitharaman also confirmed that the 28% tax will into place once the amendments to the law are made.

"GST Council’s discussions today on online gaming were substantive. The Council will ensure it is in touch with IT ministry. We will align with the regulation the ministry brings in."

Online Gaming Community Upset Over 28% GST

Seeing this as a huge setback, the FICCI Gaming Committee requested the Central Board of Indirect Tax & Customs to not mark up the GST to this extent. It will be "extremely detrimental to the survival of the online gaming industry" if such high taxes are levied.

Joy Bhattacharjya, Director General of the Federation of Indian Fantasy Sports commented that he feels this would be a killer blow for the industry, and said that "the consumer will get far less money in return."

"Almost $4 billion of FDI was supposed to come into this industry. Now looking at this, this completely retrograde step, you can see that that capital is very unlikely to come into India, given the fact that this industry will be absolutely crippled," he added.