In the midst of an escalating tussle between Raj Bhavan and the Left government, Kerala Governor Arif Mohammed Khan has officially signed an ordinance altering the state’s GST law pertaining to gambling activities.

As reported by PTI, sources within Raj Bhavan have confirmed the signing of this ordinance by Governor Khan. The Supreme Court had previously admonished Governor Khan for the delay in approving multiple bills passed by the Kerala state legislature.

This development comes after the 50th Goods and Service Tax (GST) Council meeting set the GST rate at 28 per cent for gambling across casinos, horse racing, and online gaming. Earlier during July and August meetings, the GST Council made a definitive decision to impose a 28% GST on the entire face value of bets made in online gaming, casinos, and horse racing. These activities, namely online gaming, casinos, and horse racing, have been categorized under GST as actionable claims, similar to lottery, betting, and gambling, subject to a 28% tax. Amendments to the Central GST and Integrated GST, endorsed by Parliament and notified by the central government, came into effect on October 1.

Following the council’s decision, the central government incorporated the amendment into the GST Act.

The state government, in alignment with these alterations, made amendments within the state GST law, aiming to address uncertainties concerning betting practices involving monetary transactions, encompassing online gaming, casino betting, and horse racing.

This ordinance seeks to clarify and streamline the existing GST law regarding monetary wagering in various forms.