Reports: States to go Ordinance route for 28% GST on online gaming

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As revealed by the Finance Minister Nirmala Sitharaman during the 51st GST council meeting, the majority of the states are ready to implement 28% GST on online gaming, casinos and horse racing as soon as possible.

Now, the latest reports believe that states might opt for Ordinance route to bring the new GST on online gaming into effect. Rather than waiting for clearance from legislatures, the states seem to be in a jiffy to enforce the new GST rates. The Union Cabinet’s approval of an amendment bill is also expected to raise the urgency of the situation.

Speaking to The Economic Times, Karnataka revenue minister Krishna Byre Gowda said, “We are aligned with the Government of India on this. I think most states will take the Ordinance route.”

Gowda believes this owing to central government’s recent statement to speed up the states’ amendment process through any means. He also believes that the statement was a hint for more revenue potential.

States likely to request finance department

Other states’ senior officials also believe that with the Union Cabinet passing the amendment, states are likely to request finance department to amend state GST laws through an Ordinance.

With the new GST rate in effect as soon as possible, the states will be able to raise a fresh round of claims from online gaming companies, casinos, and horse racing clubs with the help of tax authorities.

The decision for a 28% GST on online gaming, casinos, and horse racing was said to be a near unanimous one. This clearly explains the eagerness of the states to implement the same. While some states were against the decision, most states might have eyed potential revenue boost to their economies.

By implementing 28% GST as soon as possible, the states might be planning to collect increased taxes this fiscal year itself. The online real money gaming industry. However, claims that the new tax rate will disrupt the growth and revenue from gaming sector.