Rajeev Chandrasekhar clarifies his request to GST Council to reconsider decision on online gaming

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Minister of State for Electronics and Information Technology Rajeev Chandrasekhar has clarified that any form of suggestion to the GST Council regarding reconsideration of 28% GST rate will be done after the new regulatory framework in relation to the online gaming rules is ready.

The clarification has come in after the interview on Monday in which he said that he might ask the GST Council for reconsideration of their decision.

After the nascent n (and) evolving regulatory framework around the online gaming rules that define permissible online games develops – then we will communicate new framework to gst council amd (and) rqst (request) them to consider this new framework,” said Chandrasekhar on Twitter.

Prior to the GST Council decision, MeitY had released amendments to the IT Rules, 2021 in April. The rules stipulate the formation of self-regulatory bodies to decide which games will be permitted. They also state that games involving wagering will not be allowed.

Chandrasekhar has called the decision by the GST Council a “well-thought-out preliminary measure”. The gaming companies, however, are in shock with the rate of taxation and the criteria of its implementation. They claim that it will lead to shutdown of several gaming entities and virtually destroy the industry.

As a result, the industry participants are putting in efforts to convince the Council to reconsider its decision. Most recently, it has come to light that the online gaming firms are seeking a meeting with government officials for that purpose.

Meanwhile, the draft amendment to the GST law to effect the changes announced will be tabled in the parliament during the monsoon session. When passed, online real money gaming, casinos and horse racing will be taxed 28% GST on full face value amount.