GST Council affirms 28% tax on online betting from 1st October
The GST Council on Friday affirmed a 28% tax on online betting from October 1, 2023. The decision was taken at the 51st meeting of the Council, which was chaired by Union Finance Minister Nirmala Sitharaman. The tax will be levied on the gross gaming revenue (GGR) of online betting operators. GGR is the total amount of money that a betting operator takes in from its customers, minus the amount of money that it pays out in winnings.
The decision to impose a 28% tax on online betting has been welcomed by some experts, who say that it will help to bring the industry under the tax net and generate revenue for the government. However, other experts have expressed concern that the high tax rate could stifle the growth of the online betting industry in India.
The online betting industry in India is growing rapidly, and it is estimated to be worth billions of dollars. The industry is dominated by foreign operators, but there are also a number of Indian operators that are active in the market. The GST Council’s decision to impose a 28% tax on online betting is likely to have a significant impact on the industry. It is unclear how many operators will be able to afford to pay the high tax rate, and it is possible that some operators may be forced to exit the Indian market.
The decision is also likely to lead to an increase in the cost of online betting for customers. Operators are likely to pass on the cost of the tax to their customers, which could lead to higher prices for online betting services.
The GST Council’s decision is a controversial one, but it is likely to have a significant impact on the online betting industry in India. It remains to be seen whether the high tax rate will stifle the growth of the industry or whether it will be able to withstand the impact of the tax.
