Key Takeaways
- The 28 percent GST targets only the gambling buy‑in, leaving winnings tax‑free.
- Nirmala Sitharaman confirmed the rule after the 51st GST Council meeting.
- Implementation is planned for 1 October, subject to approval by Parliament and state assemblies.
On Wednesday, August 2, Union Finance Minister Nirmala Sitharaman addressed growing confusion over the new tax.
The 28 percent GST will apply to the initial buy-in for online gaming, gambling and horse‑racing. It will not be charged on any 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.
