News Brief
GST on online gambling companies. (Representative image)
In the upcoming fiscal year, the Indian government aims to collect up to 140 billion rupees ($1.7 billion) in goods and services tax (GST) from online gambling companies, according to Revenue Secretary Sanjay Malhotra.
This move follows the imposition of a 28 per cent tax on funds collected by online gaming companies from their customers for each bet, causing concern within the $1.5 billion industry, which is supported by global investors as per a report by Hindustan Times.
In the current fiscal year ending on 31 March, the government anticipates collecting about 75 billion rupees from the online gambling tax, a significant increase from the 16 billion rupees collected in the previous year.
The tax generated 35 billion rupees in the October-December quarter, indicating a notable impact.
Malhotra mentioned that the industry has stabilised, but it is too early to draw definitive conclusions.
A review of the framework for taxing online gambling companies is scheduled for completion by April, although this does not necessarily imply changes to the existing tax rates.
Despite the challenges faced by the online gambling sector due to the tax imposition, the government's overall GST collections have remained robust, averaging 1.7 trillion rupees per month.
Malhotra expressed optimism, stating, "We are expecting an average monthly collection of 1.80 trillion to 1.85 trillion rupees from the next fiscal year."
The Union Finance Ministry had officially declared that under the amended provisions of the GST law introducing the taxation of e-gaming, casinos, and horse racing will be implemented from 1 October.
According to the amended Central GST Act, these activities were categorised as "actionable claims," similar to lottery, betting, and gambling, subjecting them to a 28 per cent GST on the full face value of bets.
Support Swarajya's 50 Ground Reports Project & Sponsor A Story
Every general election Swarajya does a 50 ground reports project.
Aimed only at serious readers and those who appreciate the nuances of political undercurrents, the project provides a sense of India's electoral landscape. As you know, these reports are produced after considerable investment of travel, time and effort on the ground.
This time too we've kicked off the project in style and have covered over 30 constituencies already. If you're someone who appreciates such work and have enjoyed our coverage please consider sponsoring a ground report for just Rs 2999 to Rs 19,999 - it goes a long way in helping us produce more quality reportage.
You can also back this project by becoming a subscriber for as little as Rs 999 - so do click on this links and choose a plan that suits you and back us.
Click below to contribute.
Latest