The 53rd GST council meeting was held after the Lok Sabha election, and no relief was provided for the online gaming industry. The Finance Minister, Nirmala Sitaraman, announced many agendas. Here, decisions were made to improve trade, ease GST compliance, and offer taxpayer relief.
However, the online gaming industry and casinos predicted a revision of the 28% GST rate but did not discuss it on that date. She announced many agendas, and legal advisory still remained due to lack of time. Also, she told reporters that the next meeting will be on a post-budget.
The union finance ministers are also expected to seek input from state finance ministers on issues such as fertilizer tax exemption, pre-deposit of appeal under the GST tribunal, and others. However, she said there will be another meeting, hopefully in mid- or end-August.
What Is The Rule Of GST On Real Money Gaming?
The GST meeting last year implemented 28% on online real-money gaming and casinos, which is equal to the wager amount. However, this decision faced strong criticism from stakeholders in the gaming industry, including investors, developers, and gaming representatives.
The communication was in writing, and they requested reconsideration of the tax rate’s implementation. They explained that the 50th GST council meeting, held on 11 July 2023, implemented the 28% GST on the online gaming industry, which came into force by October 1.
With the new guidelines, a flat 28% GST is levied on the total value of bets placed on online games and casinos. The values are said to be applied to games of skill or chance. According to previous data, a total of 18% GST was levied on the specific amount that the platforms charged for skill-based games.
Several online gaming startups implemented a new tax structure. These include Gameskraft and Dela Corp, where notices regarding tax payments were made in the amount of Rs. 1.12 lakh crore in GST.
Hopefully, the next meeting will feature a discussion on the provisions of GST law that may require any amendments, and the next can be passed along with the Finance Act. Also, big ban reforms may be taken later, and GST demands on Retrospective claims may be discussed for better GST compliance.
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