On Wednesday, August 2, Union Finance Minister, Nirmala Sitharaman, amid confusion and concerns about the imposition of 28 percent GST on online gaming, gambling, and horse-racing, clarified that the GST will be imposed on the initial buy-in, not on the winnings.
Sitharaman, who was speaking after the 51st GST Council meeting, said that all attempts would be made at the central and state levels to pass the required legislation in the Parliament and the state assemblies, so that the new rates can be implemented from 1 October.
This development comes after the online gaming and gambling industry voiced its concerns about whether the 28 percent GST would be applicable not only to the initial buy-in, but also to the winnings, thus leading to double taxation. States too expressed their concerns at Wednesday’s meeting.
