CBIC is ready to implement 28 percent GST on online gaming from October 1, its Chairman Sanjay Kumar Agarwal said on September 28.

“All states need to pass it in their respective assemblies,” he further added.

“States need to pass in their assemblies or issue ordinance by September 30 to implement 28 percent GST on online gaming from October 1,” he further added.

Agarwal further said that a review would be held six months after implementation of 28 percent tax on online gaming.

The Goods and Services Tax (GST) Council announced in July that bets placed in online gaming, horse racing, and casinos will attract a 28 percent tax at full value

Online gaming

On the show cause notices being received by online gaming companies, he said that these are being issued as per legal provision and is a part of the stand taken by the department. 

“The department is taking a uniform stand in interpretation of law and accordingly show cause notices are being issued,” he said.

Iron & Steel impacted by fake ITC

Fake input tax credit (ITC) in this issue is quite complex and the department has received various suggestions regarding GST rate and reverse charge mechanism (RCM). It is being discussed. It’s not just iron and steel but other sectors also which are impacted by fake ITC. GST council’s decision on the return filing or registration process will resolve the problem, he said.

“Towards the fake ITC menace, the government is taking several decisions in the GST Council and as per that the process for registration has been strengthened. Certain more verifications are being carried out,” he added.

Source: Money Control
https://www.moneycontrol.com/news/business/28-gst-on-online-gaming-cbic-ready-to-implement-gst-from-oct-1-11444881.html