New Delhi, Dec 17 (PTI): Central Board of Indirect Taxes chief Vivek Johri on Saturday said online games where winning is dependent on a certain outcome would attract 28 per cent GST on the full bet value.
Though the report of the Group of ministers (GoM) on online gaming did not come up for discussion at the GST Council, the department would go by the view that 28 per cent GST is payable on full bet value put in by a player, and not net of margins.
The comments assume significance as the Gameskraft Technology Pvt Ltd (GTPL) GST evasion case is still in the court.
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Directorate General of GST Intelligence (DGGI) in September issued a show cause notice to Bengaluru-based online gaming company Gameskraft Technology Pvt Ltd (GTPL), for not Goods and Services Tax (GST) to the tune of Rs 21,000 crore.
Asked what would be the position of the Central Board of Indirect Taxes (CBIC) since the Council has not decided yet on the GoM report, Johri said the department’s view is that 28 per cent GST is payable on actionable claims arising out of betting or gambling and the tax is to be payable on full value, not net of margins.
“The gaming activity is considered as gambling because the winning is dependent on a certain outcome,” Johri said.
The report of the GoM could not come up for discussions in the GST Council since it came in just two days ahead of the Council meeting and hence could not be circulated to the States. Usually, the GST Council secretariat gives notice to members of the GST Council before tabling any agenda.
Meghalaya chief minister Conrad Sangma chaired the Group of Ministers (GoM) on Thursday submitted its report to Finance minister Nirmala Sitharaman.
