Get All Access for $5/mo

GST Council Is Likely To Meet On August 2 To Discuss Rules The amendment in GST law and rules as per decision taken by Council in the previous meeting will be put up to Council for approval

By Teena Jose

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Freepik

The Goods and Services Tax (GST) Council is likely to meet on August 2 to discuss the issues over the rules related to implementation of 28% GST on horse racing, online gaming and casinos.

Council is not likely to rethink the decision to impose 28% GST on the full value of those activities. "The discussions will be around procedural issues and amendments in the GST law that have to be approved by the GST Council. Also, there will be no roll back of the decision, according to media reports citing close sources of the matter.

The amendment in GST law and rules as per decision taken by Council in the previous meeting will be put up to Council for approval. The earlier decision was only in principle. Additionally, the legal amendment will provide specific details about the rate, the methodology of the face value on which the 28% GST rate would be levied for online gaming, casinos and horse racing, added the source.

The GST Council had decided to impose 28% GST on online gaming, horse racing and casinos on the full face value in its meeting on July 11. To bring this into effect, section 3 of the GST Act needs to be amended to bring online gaming and horse racing as taxable actionable claims. The government is keen on introducing the amendments in the ongoing Monsoon session of Parliament that is on till August 11, stated the reports.

While the government has maintained that this decision is not intended to harm any industry, online gaming companies have raised concerns about the impact of this move on the industry.

Earlier this month, top global and domestic investors including Tiger Global, Peak XV (formerly Sequoia Capital India) and Steadview Capital reportedly wrote to the Prime Minister, seeking to review the 28% GST on online gaming. They said that the decision will adversely impact $4 billion in prospective investments in the sector.

The Ministry of Electronics and Information Technology (MeitY) may also take up the issue with the GST Council and ask for a possible review.

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.
Business News

Former Steve Jobs Intern Says This Is How He Would Have Approached AI

The former intern is now the CEO of AI and data company DataStax.

Science & Technology

5 Automation Strategies Every Small Business Should Follow

It's time we make IT automation work for us: streamline processes, boost efficiency and drive growth with the right tools and strategy.

Leadership

Visionaries or Vague Promises? Why Companies Fail Without Leaders Who See Beyond the Bottom Line

Visionary leaders turn bold ideas into lasting impact by building resilience, clarity and future-ready teams.

Side Hustle

'Hustling Every Day': These Friends Started a Side Hustle With $2,500 Each — It 'Snowballed' to Over $500,000 and Became a Multimillion-Dollar Brand

Paris Emily Nicholson and Saskia Teje Jenkins had a 2020 brainstorm session that led to a lucrative business.

Growing a Business

Stop Chasing Subscribers — Start Making Money With These Newsletter Hacks

Here's how operators profit from newsletters by turning acquisition costs into revenue and leveraging one audience to build multiple assets.

Green Entrepreneur®

How Global Business Leaders Can Build a Sustainable Supply Chain

Businesses can build sustainable supply chains by leveraging technology to reduce environmental impact, optimize resources and track emissions while balancing operational efficiency and sustainability goals.