Indian Gambling Subject To 28% Goods And Services Tax.

The Indian Goods and Service Tax Council has decided to introduce a 28% goods and service tax on internet gambling, horse racing, and casinos.

The tax will be applied to both the stake's total value and the chips' cost. There won't be a distinction made between chance-based games and skill-based games.

At the council's 50th meeting, the committee also decided to lower the tax on food and beverages served in movie theatres from 18% to 5% and to provide exemptions for several medicinal products.

Finance Minister Nirmala Sitharaman commented: "The GST Act will be amended to include online gaming and horse racing. Very substantive discussions have taken place on the matter of online gaming. All the states presented their views today, including Sikkim and Goa, which see a lot of tourism for casinos."

Not everyone has reacted favourably to the news. Indirect Tax Practise Leader at SW India, Ankur Gupta, stated:

 "Ignoring the long-time demand of the gaming industry, levying a 28% tax rate on the gaming industry will be a big setback for Indian players. We might immediately see notices being issued to the gaming players for differential tax and with this new series of litigation." 

Roland Landers, CEO, The All India Gaming Federation, added: "We believe this decision by the GST Council is unconstitutional, irrational and egregious. The decision ignores over 60 years of settled legal jurisprudence and lumps online skill gaming with gambling activities. This decision will wipe out the entire Indian gaming industry, lead to job losses, and the only people benefitting from this will be anti-national illegal offshore platforms."