Online gaming, casinos and racing are subject to 28 percent Goods and Services Tax (GST). A meeting of the Ministerial Group (GOM) held today unanimously decided that 28 per cent duty would be levied on these services.
The current GST rate is 18 percent.
GST will be levied on the initial bet or gaming amount and not on each bet or win amount. G Business has learned that a report on the matter will probably be submitted in a few days. This detailed report by Tarun Sharma.
Sharma said there was a consensus on GST tariffs on online gaming, casinos and racing. However, the GOM believes that a waiver should be granted and tariffs should be made only on the initial amount and not on the billing amount.
He said the GOM would submit its report to the finance ministry and later take it to the GST council meeting, Sharma added, citing his sources.
Although the GST is being raised to 28 per cent, the charges will only apply to the initial amount, Sharma said.
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Gaming stocks such as Delta Corporation and Nazara Technologies responded to the news shortly after the newsbreak.
Watch the Zee Business Tweet video below:
Online games, casinos # GST Meeting rate ends
28% GST possible on online games, casinos, races
GST will be applicable on initial betting, gaming amount
– Zee Business (ZeeBusiness) May 18, 2022
At 2:53 p.m., Delta Corporation shares were trading at Rs 227.50 on the NSE, down nearly 6 percent from Tuesday’s close. At the time, shares of Nazara Technologies were trading at around Rs 1,236.90 and down about 1 per cent. At the time of writing, Nazara stock was down more than 2 percent.
G Business Managing Editor called it a big downside for Delta and Nazara gaming companies.