28% GST on full face value of bets to yield more tax revenue: finance minister
Nirmala Sitharaman on Tuesday informed the Rajya Sabha in response to a question that it is anticipated that the levy of 28% GST on full face value of bets, as recommended by the 50th GST Council meeting, will result in increase of revenue from current levels. The minister informed that casinos are currently paying 28% GST on Gross Gaming Revenue (GGR) while the online gaming industry supplying 'actionable claims' and some horse race clubs are currently paying GST at the rate of 18% on platform fees/commissions ranging generally from 5% to 20% of the full face value while some horse race clubs are paying 28% on the full face value.
These online gaming companies supplying actionable claims and some horse race clubs paying 18% on platform fee/commission are disputing the 28% levy on actionable claims in the form of betting and gambling before various legal fora, the minister informed in her written reply. "It is anticipated that the levy of 28% on full face value, as recommended in the 50th GST Council meeting, will result in increase of revenue from current levels," the minister informed.
As per NITI Aayog estimates referred in the Draft National Policy for Growth of Animation, Visual Effects, Gaming, Comic and Extended Reality sector in India prepared by Ministry of Information and Broadcasting, the online gaming segment grew by 28% in 2021 to reach $1.9 billion, the minister informed the House. Central and state governments are currently in the process of amending their laws to ensure that the online gaming industry, casinos and horse racing clubs pay 28% GST on the total amount deposited by their customers for betting.
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