In a significant move to regulate online money gaming and gambling, the Kerala government cabinet has proposed an ordinance for the amendment of the Kerala Goods and Services Tax (KGST). The decision was finalized during a cabinet meeting held at Rama Nilayam in Thrissur on December 6 (Wednesday).
This decision comes on the heels of the Union Finance Ministry’s move in September, where notifications were issued to implement a uniform 28% Goods and Services Tax (GST) on online money gaming, casinos, and horse racing.
The Union Government’s decision was aligned with the 50th GST Council’s resolution to impose a 28% GST on the full face value of transactions related to online gaming, casinos, and horse racing.
The cascading effect of the Union Government’s decision prompted State Governments to make corresponding amendments to their respective State GST laws. In line with this, the Kerala government is now taking proactive measures to address the tax implications of online money gaming and gambling within the state.
The proposed State Goods and Services Tax amendment is not only aimed at aligning with the Union Government’s directive but also at providing clarity on taxation provisions related to online gaming activities. The move reflects the state’s commitment to regulate and streamline the taxation framework surrounding the burgeoning online money gaming and gambling sector.
By incorporating provisions in the State GST Act, the Kerala government aims to eliminate any ambiguity surrounding the taxation of these online activities. The decision underscores the state’s intent to create a transparent and legally sound framework for taxing online money gaming, casinos, and horse racing.
As the online gaming industry continues to witness unprecedented growth, the Kerala government’s proactive stance in amending the SGST reinforces its commitment to maintaining fiscal discipline and ensuring a fair and regulated environment for online money gaming and gambling activities. The proposed amendments will play a crucial role in shaping the regulatory landscape and addressing potential challenges in the taxation of this dynamic sector.
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