28% GST on online gaming, casinos and horse racing
The Goods and Services Tax (GST) Council on Tuesday approved a uniform 28 per cent tax on the full “face value” of bets involving online gaming, casinos and horse racing, bringing them on a par with betting and gambling.
This goes against the argument of industry stakeholders that games of skill (online gaming and casinos) should be treated differently from games of chance (betting and gambling) for tax purposes.
“The said levy will be applicable on the face value of the chips purchased in the case of casinos, on the full value of the bets placed with bookmaker/totalisator in the case of racing,” explained the Finance Ministry.
Currently, most online gaming platforms pay an 18 per cent tax on the commission collected for each game, while betting, gambling and horse racing attract a 28 per cent GST.
