There would be a 28 percent tax on the full face value of bets. (representative)
New Delhi:
The almighty Goods and Services Tax (GST) Council on Tuesday decided to levy a 28 percent tax on the turnover of online gaming companies, horse racing and casinos, Finance Minister Nirmala Sitharaman said.
The panel, led by the Union Minister of Finance and made up of representatives from all states and UTs, decided on the tax rate based on the recommendation of a group of ministers concerned with taxing casinos, horse racing and online gambling.
The issue before the GoM (group of ministers) was whether to impose a GST of 28 percent on the face value of bets, or gross gaming revenue, or just on platform fees.
Ms. Sitharaman said the tax will be levied on the entire value.
The tax on online gambling companies would be imposed without any distinction based on whether the games required skill or were based on chance.
The GST board also decided to exempt cancer-fighting and rare disease drugs from the levy, she said.
GST on satellite launch services provided by private operators is also exempt, she added
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