51st GST Council Meeting is to be held by Video Conferencing today (2nd August 2023).

Today's meeting is crucial for those who are into the online gaming business. In the previous meeting, the GST Council decided to levy a uniform 28% tax on full face value for online gaming, casinos, and horse racing. Subsequently, the big online gaming companies and their CEOs have continued to request the government to revoke the decision as it may hamper the growth of the new-age startups.

Therefore, on Wednesday, the Group of Ministers will discuss and take a final call on the proposal to levy 28% GST on online gaming, casinos, and horse racing.

GST on online gaming

On 11 July, the GST Council approved levying a 28% tax on the full face value of bets in online gaming, casinos, and horse racing.

Subsequently, the Law Committee, comprising Centre and state tax officers, has prepared draft rules for consideration by the GST Council with regard to the computation of supply value for tax purposes.

The committee has suggested the insertion of a new rule under which the value of supply of online gaming would be the total amount deposited with the online gaming platforms by way of money or virtual digital assets on behalf of the player.

With respect to casinos, the committee has proposed that the supply value would be the amount paid by a player for the purchase of tokens, chips, coins, or tickets. The council will discuss the.......

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