Pankaj Chaudhury, Minister of State in the Ministry of Finance, informed the Rajya Sabha on December 20, Tuesday that online gaming attracts 28 per cent GST and the central government has formed a task force to look into all aspects of online gaming regulation.

“Actionable claims in the form of betting and gambling, including those arising from online gaming attract 28 per cent GST and the GST Acts does not make the levy dependent on whether it is a game of skill or game of chance. Cases have been filed challenging the levy of GST on online gaming,” Chaudhury said during the session in the Parliament.

He further informed the Parliament that the Central Government has constituted an Inter-Ministerial Task Force (IMTF) to look into all aspects of online gaming regulation. The GST Council has also constituted a Group of Ministers (GoM) on casinos, race courses, and online gaming to examine all issues of rate and valuation of activities in casinos, race courses, and online gaming.

While there were some speculations about paying taxes on online gaming before the GST meeting happened on December 17, the chief of the Central Board of Indirect Taxes, Vivek Johri clarified that there would be a 28 per cent GST only in situations when the winning will be dependent on a certain outcome.

Even back in January 2019, senior Congress leader and a Member of Parliament from Thiruvananthapuram, Shashi Tharoor, had introduced a private member’s bill in the Lok Sabha and proposed to bring regulations for the online gaming sector.

During that Parliamentary session, Tharoor had said, “The need of the hour is a comprehensive regulatory framework, overseen by a competent regulatory body, to check the flow of black money in online sports gaming, and to curb any illegal activities in connection with it.” 

Source: Zee Business
https://www.zeebiz.com/personal-finance/gst/news-online-gaming-attracts-28-gst-govt-to-constitute-a-task-force-for-online-gaming-regulation-finance-ministry-213643