Finance Minister Nirmala Sitharaman on Tuesday said the 28% GST on the full face value of supplies in casinos, race courses, and online gaming will result in higher revenues.
The online gaming segment grew by 28% in 2021 to reach $1.9 billion, as per NITI Aayog estimates referred to in the Draft National Policy for Growth of Animation, Visual Effects, Gaming, Comic & Extended Reality sector in India prepared by the Information and Broadcasting Ministry.
In a written reply to a question in the Rajya Sabha, Sitharaman said casinos are currently paying 28% GST on Gross Gaming Revenue (GGR).
Online gaming industry supplying actionable claims, and some horse race clubs are currently paying GST at the rate of 18% on platform fees/commission ranging from 5 to 20% of the full face value, while some horse race clubs are paying 28% on the full face value.
Sitharaman said online gaming companies supplying actionable claims and some horse race clubs paying 18% on platform fee/commission are disputing the 28% levy on actionable claims in the form of betting and gambling before various legal fora.
“It is anticipated that the levy of 28% on full face value, as recommended in the 50th GST Council meeting, will result in an increase of revenue from current levels,” Sitharaman added.
Edited by Suman Singh
