All states will impose a 28% GST on real-money online gaming beginning on October 1: Sanjay Malhotra, revenue secretary

All states will impose a 28% GST on real-money online gaming beginning on October 1: Sanjay Malhotra, revenue secretary

In New Delhi: According to Revenue Secretary Sanjay Malhotra, 18 states have already passed legislation implementing the 28% Goods and Services Tax (GST) on online gaming, horse racing, and casinos. The remaining states have all agreed to enact the necessary changes, which will take effect on October 1st.

After the GST Council meeting, Malhotra told reporters that the remaining 13 states had agreed to update their laws or pass ordinances to implement the essential modifications starting on October 1.

The clarification is made in light of the industry's misunderstanding caused by some states' inability to pass state GST legislation amendments before the new tax regime for online real-money games went into effect on October 1 as determined by the Council.

The problem of the online gaming business was raised by Delhi State Finance Minister Atishi, according to Finance Minister Nirmala Sitharaman to media. According to Sitharaman, the Delhi finance minister was worried that taxing online gaming sites at a rate of 28% would put an end to a budding business.

Atishi had earlier in the day stated at a virtual briefing that tax notices issued to online gaming companies totaling approximately 1.5 trillion rupees should be withdrawn and that imposing a 28% GST on these businesses will bring down not only the online gaming industry but also the entire start-up sector in India.

The federal government did not formally acknowledge the 1.5 trillion number. According to the Centre, the notices were being issued by the Directorate General of GST Intelligence (DGGI), an autonomous organization. The viability of online gaming platforms has been allegedly impacted by th

e 28% tax.