Revenue Secretary’s BIG ANNOUNCEMENT on GST on online gaming! GST Council to mull over THIS decision in next meeting

In a major development for the online gaming industry in India, Revenue Secretary Sanjay Malhotra announced that the Goods and Services Tax (GST) Council would decide on whether the face value is to be considered for taxation on online gaming would be on entry-level or on each bet made.

The official said that the Fitment Committee and the Law Committee will submit a proposal in this regard. The proposal would be put up before the GST Council in its next meeting.

Sanjay Malhotra reiterated that the GST Council’s decision to levy a uniform 28 per cent GST on online gaming was unanimous, adding that the council had agreed to calculate GST on a face value instead of Gross Gaming Revenue (GGR).

He said that the implementation of GST Council’s decision is an important aspect, which will be discussed. How the face value for the calculation of the tax is to be arrived at will be included in the purview of this discussion.

Earlier this month, there was a big outcry from the online gaming, casino, ad horse-racing industries over the high GST levied on these activities. Voices from certain quarters had raised concerns, saying that the move could have a massive negative impact.

Finance Minister Nirmala Sitharaman had also clarified the rationale behind imposing the tax. She said that aspects such as tourism, moral signalling, and the revenues of states such as Goa and Sikkim were all discussed during the GST Council’s milestone 50th meeting.

Sources from the Finance Ministry recently told ET NOW that the government is not rethinking the 28 per cent GST on online gaming. The Finance Ministry was also not in favour of holding further consultations with the industry, sources said, pointing out that the decision was taken after due deliberation with the stakeholders.

Source from: https://www.timesnownews.com/business-economy/industry/revenue-secretarys-big-announcement-on-gst-on-online-gaming-gst-council-to-mull-over-this-decision-in-next-meeting-article-102124152

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