FinMin hikes GST on online gaming to 28%, exempts tax on satellite services, cancer drugs

The GST Council on Tuesday agreed to levy a 28 per cent tax on online gaming, casinos and horse racing and the tax would be levied on full face value. Ahead of the meeting finance ministers of various states asked for a higher tax rate of 28 per cent posing a challenge for a category of gaming startups in India.

The panel, headed by the Union finance minister and comprising of representatives of all states and UTs, decided on tax rate based on recommendation of a group of ministers that looked at taxing casinos, horse racing and online gaming.

The issue before the GoM (group of ministers) was whether to impose a 28 per cent GST on the face value of bets, or gross gaming revenue, or just on platform fees.

Sitharaman said the tax will be levied on the entire value.

The tax on online gaming companies would be imposed without making any differentiation based on whether the games required skill or were based on chance.

The GST Council also decided to exempt cancer fighting drugs and medicines for rare diseases from the levy, she said.

Also, GST on satellite launch services provided by private operators has been exempted, she added.

Ahead of the meeting Sitharaman released a special cover and customised myStamp on the occasion of the 50th GST Council meeting. Chief Post Master General, Delhi Circle presented the special cover and the customised myStamp to Sitharaman. The Finance Ministry confirmed the development in a tweet.  

The Finance Ministry tweeted images from the event and wrote: “On the occasion of the 50th meeting of the GST Council, Union Finance Minister Smt. @nsitharaman releases a Special Cover and customised myStamp. The Special Cover and customised myStamp was presented to the Union FM Smt. @nsitharaman by the Chief Post Master General, Delhi Circle @IndiaPostOffice”.  

(With PTI inputs)