Delta Corp shares to be in focus tomorrow after GST Council clears 28% tax on online gaming
GST) council at its 50th meeting on July 11 decided to levy a 28 per cent GST rate on the full value of gaming , horse racing, and casinos - which comes as a drawback to online gaming companies. GST Council Representatives said that the council decided to make an amendment as these are actionable claims. "Will bring an amendment to GST law to include online gaming and will be taxed at 28 percent on full face value," finance minister Nirmala Sitharaman said after the GST Council meeting.
Currently, services of casinos, horse racing, and online gaming attract 18 per cent GST. The effective date for the GST rate on the full value of online gaming will be rolled out after the amendment of GST law. Also Read: GST Council reduces tax on food served in cinema halls to 5%; check details Delta Corp is a gaming and hospitality corporation that owns and operates casinos and hotels under several brands.
It is engaged in casino gaming, with the majority of its offshore casinos in Panaji, Goa. Sudhir Mungantiwar, Maharashtra Forest Cultural and Fisheries Minister, said the council has decided to do away with the distinction of the game of skill and chance in the case of online gaming. Experts from the gaming industry expressed disappointment after the GST meeting announcement, claiming that it could prove to be ''detrimental' to the online gaming industry, and that the chargeability on full value is what is going to hurt the gaming companies to an extent that it may lead to its extinction.
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