11-07-2023 : During its meeting, the GST Council reached a consensus on levying a 28 percent tax on online gaming, casinos, and horse racing. The tax would be imposed on the full face value of bets placed in these activities. West Bengal Finance Minister Chandrima Bhattacharya announced that the Council has also granted exemption from GST on the import of cancer drug Dinutuximab and Food for Special Medical Purposes (FSMP) used in the treatment of rare diseases.
Bhattacharya stated that the GST Council has decided to apply a 28 percent tax on online gaming, casinos, and horse racing, calculated on the full face value of bets. This move aims to streamline the taxation process for these activities. The minister added that amendments will be made to the GST law to specify that these three supplies are not actionable claims, similar to lottery and betting.
Additionally, Sudhir Mungantiwar, Maharashtra’s forest cultural and fisheries minister, revealed that the GST Council has eliminated the distinction between games of skill and chance in the case of online gaming. This means that the tax rate of 28 percent would be applied to the full face value of bets placed in these activities. The decision aims to bring uniformity and clarity in the taxation of online gaming.
Furthermore, Mungantiwar mentioned that the council has approved the establishment of appellate tribunals. These tribunals will provide a mechanism for taxpayers to challenge decisions made by the GST authorities.