Union Finance Minister Nirmala Sitharaman said the decision was not taken with consensus, as had happened at the time of the GST change on lottery, with some states registering dissent but most states asking for early implementation of the decision taken at the last Council meeting.

Although some states differed on the valuation norms and tax levy on online gaming and casinos, the Goods and Services Tax (GST) Council, in its 51st meeting via videoconferencing Wednesday, decided to levy 28 per cent tax at face value at entry level.

The Council, however, gave some relief by deciding not to impose the tax levy on the amount entered into games/bets out of winnings of previous games/bets in online money gaming or on total value of each bet placed, as would be the case in casinos.

Union Finance Minister Nirmala Sitharaman said the decision was not taken with consensus, as had happened at the time of the GST change on lottery, with some states registering dissent but most states asking for early implementation of the decision taken at the last Council meeting.

In its previous meeting on July 11, the GST Council had decided to levy a uniform 28 per cent tax on full face value for online gaming, casinos and horse racing.

The new tax levy is now expected to be effective from October 1. A review would be undertaken after six months of the implementation, Sitharaman, who heads the Council, said.

“The valuation may be done based on the amount paid or payable or deposited with the supplier by or on behalf of the player, excluding the amount entered into games bets out of winnings of previous games and bets, and not on the total value of each bets placed… (GST will be on) entry (level) whatever they pay to get chips and not what they pay in each game,” she said.

Source:https://indianexpress.com/article/business/28-gst-on-online-gaming-effective-from-oct-1-review-next-year-fm-sitharaman-8873549/