Thiruvananthapuram (Kerala) [India], December 6 : The Kerala Cabinet on Wednesday proposed to bring an ordinance to make the necessary changes for imposing 28 per cent tax on online gaming, casinos, and horse racing in the state.
The state cabinet's decision is in line with the last GST Council meeting, wherein it had decided to impose a 28 per cent tax on online gaming, casinos, and horse racing.
On August 11, the Lok Sabha, during its final session of the monsoon season, passed amendments to two Goods and Service Tax (GST) laws with a voice vote and minimal debate. These amendments relate to the Integrated Goods and Services Tax (Amendment) Bill, of 2023, and the Central Goods and Services Tax (Amendment) Bill, of 2023.
Amendments in the GST acts were necessary to make way to levy 28 per cent taxes on such items.
The imposition of taxes came into effect from October 1 this year.
Union Finance Minister Nirmala Sitharam had earlier said the move to impose taxes on such items would be reviewed six months after it was implemented. The time frame for this would start from the time it is implemented, the Finance Minister had clarified.
This rate applies irrespective of whether these activities involve games of skill or chance. The recent amendments to the GST laws aim to offer a uniform taxation framework for these sectors and resolve any lingering ambiguities.
This rate applies irrespective of whether these activities involve games of skill or chance. The recent amendments to the GST laws aim to offer a uniform taxation framework for these sectors and resolve any lingering ambiguities.
The central government's move to tax online gaming is part of broader efforts to bring various sectors under the GST framework and streamline tax collections.
Over the last few years, various efforts have been made to increase the tax base and improve compliance.
Goods and Services Tax was introduced in the country with effect from July 1, 2017, and states were assured compensation for loss of any revenue arising on account of the implementation of GST as per the provisions of the GST (Compensation to States) Act, 2017 for five years.
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