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The decision to levy a 28 percent tax on the entire face value of wagers placed on online gaming will go into effect on October 1, despite calls from states such as Delhi and Goa for a review, finance minister Nirmala Sitharaman said on Wednesday.
She added after the panel meeting that the GST Council — the highest decision-making body of the new indirect tax regime, comprised of the Union finance minister and members from all states — reviewed the wording of revisions that will be required to enable taxing online gambling.
The panel had resolved at its last meeting to collect a 28 percent GST on the entire face value of bets placed, and the meeting on Wednesday was to discuss the tax legislation amendments that would be necessary to execute it.
Sitharaman stated that the Delhi finance minister was opposed to levying a tax on online gaming, whilst Goa and Sikkim wanted the tax to be levied on GGR (gross gaming revenue) rather than face value.
Other states, including Karnataka, Gujarat, Maharashtra, and Uttar Pradesh, according to Sitharaman, want the decision made at the last conference to be implemented.
The new levy is expected to go into effect on October 1 when necessary adjustments are made to federal and state laws, she added.
She said that the levy will be reviewed six months after it was implemented.
Last month, India opted to levy a 28 percent tax on cash collected from online gambling businesses for each wager, startling the fledgling sector supported by worldwide investors.
