The Goods and Services Tax (GST) Council, in its 51st meeting on Wednesday, decided that the levy of 28 per cent GST on online gaming, casinos and horse racing will become effective from October 1.
A review of the same will be done after six months, Union Finance Minister Nirmala Sitharaman said, addressing a press conference after the GST Council meeting.
Sitharaman further said Delhi, Goa and Sikkim have sought a review of the 28 per cent tax on online gaming.
Revenue Secretary Sanjay Malhotra said betting and gambling were illegal and liable to tax. He added that taxing online gaming will not result in legalising such games in states which have banned them.
“Betting is already liable to GST today & it does not make it legal…Betting & gambling are illegal & liable to tax. Taxing online gaming will not result in legalising online games in those states which have banned them…” Malhotra