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Online gaming, where winning depends on certain outcome, to attract 28% GST: CBIC

technology | Dec 19, 2022 12:52 PM IST

Online gaming, where winning depends on certain outcome, to attract 28% GST: CBIC

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According to CNBC-TV18 sources, even though the report submitted by the Group of Ministers (GoM) on online Gaming, Casinos and Race courses is of divergent nature, the government's view is clear on this.

Central Board of Indirect Taxes and Customs (CBIC) chief Vivek Johri on Monday said that the department’s view is unequivocal in that online gaming where winning is dependent on a certain outcome, will attract 28 percent Goods and Services Tax (GST).

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Though the report of the Group of Ministers (GoM) on online gaming did not come up for discussion at the GST Council, the department would go by the view that 28 percent GST is payable on full bet value put in by a player, and not net of margins.
According to CNBC-TV18 sources, even though the report submitted by the GoM on online Gaming, Casinos and Race courses is of divergent nature, the government's view is clear on this.
The statements take on relevance given that the GST evasion case involving Gameskraft Technology Pvt Ltd (GTPL) is still pending in court.
Earlier, Gameskraft Technology Pvt Ltd (GTPL), a Bengaluru-based online gaming firm, received a show cause notice from the Directorate General of GST Intelligence (DGGI) in September for failing to pay Goods and Services Tax (GST) in the amount of Rs 21,000 crore.
Gambling and lottery activities cannot be distinguished, according to the CBIC. Casinos, race courses and online gaming all have a common thread of gambling, which is classified as part of lottery for GST purposes.
Additionally, the GST already covers and treats lotteries at a rate of 28 percent on entire winning margins, treating all associated operations fairly and equally.
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