Crypto Assets

Search
Close this search box.
Search
Close this search box.
Search
Close this search box.
India approves 28% tax on online gaming, casinos and horse racing

India approves 28% tax on online gaming, casinos and horse racing

Facebook
Twitter
LinkedIn
Email

The Indian government’s Goods & Services Tax Council in has confirmed a maximum 28% tax levy on the entire value of all online gaming, casinos and horse racing stakes and wagers.

This landmark decision was announced by Union Finance Minister, Nirmala Sitharaman. 

Online gaming companies will now be required to pay a 28% tax on the entire amount collected from players, applied to the value of chips a player buys before playing, with no differentiation between games of chance and those requiring a level of skill.

Minister Sitharaman said that the ‘moral questions’ posed by gambling mean that it should not be taxed on a par with other essential commodities.

The Minister added that while the Information Technology Ministry is looking at the regulatory aspects of online gaming, the GST Council has taken decisions solely for tax purposes.

Industry trade association the All India Gaming Federation described the GST Council’s decision as “unconstitutional, irrational and egregious.”