Discover Casinos
Discover Tables
Discover Providers
Discover Games
Discover Deposit Methods
Best Live Casinos
Popular In UK
Top Live Dealer Tables
Native Tables
Game Guides
Other Pages
Best Software Providers
Popular List
Best Payment Methods
Most Popular
Best Bonuses
Our Favourite Offers
Country Specific Pages
Popular List

India’s GST Council Confirms 28 Percent Tax on Gambling

Posted on August 15, 2023 | 5:24 am
indias-gst-council-confirms-controversial-28-tax-on-gaming-deposits-to-kick-in-from-1-october

The Goods and Services Tax Council of India has confirmed what the gambling industry has feared: the new 28 percent tax on casino gambling, online gambling and horse racing will come into effect from 1 October 2023.

The Council had a meeting on 9 August and clarified the future of the gambling tax that was first announced on 11 July. The GST Council also made it clear that the tax would be applied to the initial purchase of chips or on deposits made by a player and not on any amounts won.

Casino states such as Goa and Sikkim tried to persuade the council to apply the respective tax to gross gaming revenues instead, and casino operators also had the same approach. However, the GST Council rejected the calls and stood by its initial decision. The only concession made by the Council was that it agreed to review the success of the implementation of the new tax six months after 1 October 2023.

The E Gaming Federation and the Federation of Indian Fantasy Sports issued a joint statement in which they welcomed the clarification announced by the GST Council but insisted that the high tax rate would have a negative impact on the industry.

“The new tax framework, while clarifying and resolving uncertainty, will lead to a very burdensome 350% increase in GST and set the Indian online gaming industry back several years,” the respective statement read.

India’s current Good and Services Tax law will be amended during the current session of the country’s Parliament in order to allow the modifications to be implemented by 1 October 2023.

Top casinos in India

Overall Rating
95
Overall Rating
92
Overall Rating
92
Read More

Delta Corp IPO Postponed

Amid the uncertainty regarding the new fiscal regulations, Delta Corp, the largest gaming company in India, announced that it has put on hold its plans of taking its online gaming division public.

Hardik Dhebar, the Chief Financial Officer of Delta Corp, explained that “the investing community obviously would want absolute crystal clarity when it comes to online gaming” and added that “nobody is going to put $1 into any new investment, especially in a sector which has this kind of overhang.”

Delta Corp’s online gaming segment, which features poker and rummy site Adda52, contributed just 15 percent of the company’s net revenue in the second quarter of 2023, but the company hopes this segment will grow explosively in the future.

Source:

“Delta Corp postpones IPO for online gaming segment amid uncertainty around new 28% gaming tax“Inside Asian Gaming. August 2, 2023.

“India’s GST Council confirms controversial 28% GST on gaming deposits to kick in from 1 October“Inside Asian Gaming. August 3, 2023.

Read More