The GST Council is preparing to meet soon to discuss possible changes to the 28% GST levied on online gaming. This news arrives after the industry sternly criticised the changes when they were first announced. So here is everything that you need to know.

When’s the meeting and What’s it about?

The Goods and Services Tax Council is set to meet virtually on 2nd August 2023. During the conference, the group will consider any legal amendments to the recently announced 28% imposed on casinos, horse racing, and online gaming. This meeting is being held to discuss issues expressed by the industry and its stakeholders like repetitive taxation in determining the full face value. The Centre will likely introduce a GST amendment bill in the ongoing session of parliament after the council’s meeting.

28% GST on Online Gaming

Earlier this month, the GST Council announced 28% GST for online gaming, casinos, and horse racing at full face value. This decision basically raised the tax for the entire industry and didn’t differentiate between games of skill and games of chance. The former currently faces 18% GST on gross gaming revenue, while the latter is imposed 28% GST on the total bet value. Soon after the July 11 announcement from the GST Council, the industry expressed its dismay and called on the Council to reconsider.

Some believed that the 28% GST could cripple the multi-billion dollar market altogether. Global Investors also wrote a letter to the Indian Prime Minister Narendra Modi to seek his aid. To prepare for the changes, online gaming companies already began cutting their marketing budgets for this year since they expect lower profits due to higher taxes. But for now, we will have to wait for the August 2 meeting to see if any notable amendments are made.