Centre ready to levy 28% GST on online gaming, says CBIC Chairman

The central government is “fully ready” to implement imposition of 28 per cent GST on online gaming, casinos and horse racing from October 1 even though implementation in states would depend on the passing of related legislation, Sanjay Kumar Agarwal, Chairman, Central Board of Indirect Taxes and Customs (CBIC) said on Thursday.

The decision to impose 28 per cent GST on online gaming, casinos and horse racing was taken in the 51st GST Council meeting held in August. Online gaming companies have been pitching for lower taxes and there have been speculations that the GST Council may review its decision in its upcoming meeting scheduled to be held on October 7.

Talking to reporters on the sidelines of an event organised by industry body FICCI CASCADE, Agarwal said, “We are fully prepared to bring it into effect from October 1. As per the decision taken in the last meeting of the GDT Council, the related notifications are under process.”

Agarwal further noted that states would be required to get approvals from their respective legislative assemblies in order to implement the new tax on online gaming, casinos and horse racing. “It is necessary for all states to pass the law or come out with an ordinance. Every state needs to pass the required legislation,” he said.

 

Earlier, addressing the inaugural of the two-day ‘MASCRADE 2023’ event, Agarwal said tax authorities have taken a number of steps to reduce the menace of fake claim of input tax credit under GST.

“An environment is being created so that the fraudsters are not allowed to enter the ecosystem and pollute it. The recent decisions taken in successive GST Council meetings, to make the suitable changes in return filing are in that direction only, so that menace of fake ITC is curbed,” he added.

Source::: DECCAN HERALD ,  dated 29/09/2023.