New Delhi: Pankaj Choudhary, Minister of State for Finance, informed the Rajya Sabha on Tuesday that the GST Council has constituted a Group of Ministers (GoM) to assess the value of casinos, racetracks and online gambling activities. He also said that 28 percent GST is being levied on online gaming.
“Aggravating claims in the form of betting and gaming, including those arising from online gaming, attract GST at 28 per cent and the GST Act does not subject the rate to whether it is a game of skill or chance. Cases challenging the levy of GST on online gaming have been filed,” Pankaj Choudhary said in the Upper House. .
In a written reply to a question posed by YSRCP MP Vijayasai Reddy, the state finance minister said the government has constituted a task force with various ministries to study the rules and regulations for regulating online gambling. Today, online games like betting and gambling, irrespective of whether it is a game of skill or a game of chance, attract GST.
Notably, in January 2019, Congress MP Shashi Tharoor introduced a private member’s bill in the Lok Sabha and proposed to bring in regulations for the online gaming sector.
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