The Union Finance Minister Nirmala Sitharaman chaired the 54th meeting of the GST Council today (9th September 2024) at Sushma Swaraj Bhawan in New Delhi. The Union Minister of State for Finance M.P.P. Chaudhary, along with the Chief Ministers of Goa and Meghalaya, and the Deputy Chief Ministers of Arunachal Pradesh, Bihar, Madhya Pradesh, and Telangana also participated in the meeting.
The Council has decided to continue the status-quo situation in the case of the GST Rates on Online gaming, casinos and race courses.
The FM announced that revenue from online gaming has jumped by 412%, with collections soaring to Rs.6,909 crore in just six months. Casinos,too,saw a 30% rise in revenue during the same period.
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The revenue spiked after the 28% of GST rates was imposed upon the gaming industry which came into effect on October 1, 2023. After the GST Council meeting in August 2023 it was clarified that online gaming platforms were required to pay 28% tax and subsequently, Central GST law was amended to make the provisions.
From October 1, 2023, entry-level bets placed on online gaming platforms and casinos were subject to 28% GST. Before that, many online gaming companies were not paying 28% GST, arguing that there were differential tax rates for games of skill and games of chance.
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Previously, skill-based games were taxed at 18%. According to the FM, the new tax regime has brought significant financial returns for the government. However, the gaming industry has faced significant challenges following the GST hike, impacting margins and stalling growth.
The Council decided to continue the status quo and decided to make further decisions regarding the gaming sector after six months after the implementation and reviewing.
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