After much waiting, the GST Council today finally announced its decision to levy a 28% GST on online gaming, casinos and horse racing. The decision is based on GoM’s (Group of Ministers) who together form the GST Council’s interim report which had proposed a 28% GST on the total amount, including the platform fee. This means that GST will be applicable to gross revenue/total prize pool.
Sample this: if there is a total pool of Rs 100, an online gaming company typically charges 10-20% as a platform fee, which is Rs 10-20. In the proposed scheme of things as opposed to levying a tax on just the platform fee, it has been suggested that a 28% GST should be imposed on the total sum of Rs 100.
More details will be added. This a developing story.