28% GST On Online Gaming, Casinos Triggers Meme Fest

The GST Council on Tuesday agreed to levy a 28 per cent tax on online gaming, casinos and horse racing, Finance Minister Nirmala Sitharaman said.

The panel, headed by the Union finance minister and comprising of representatives of all states and UTs, decided on tax rate based on recommendation of a group of ministers that looked at taxing casinos, horse racing and online gaming.

The issue before the GoM (group of ministers) was whether to impose a 28 per cent GST on the face value of bets, or gross gaming revenue, or just on platform fees.

The tax on online gaming companies would be imposed without making any differentiation based on whether the games required skill or were based on chance.

"GST Council has decided that online gaming, casinos and horse racing will be taxed at 28 per cent at entry point on full face value of bets," West Bengal Finance Minister Chandrima Bhattacharya told reporters.

However, this development has led to meme fest on social media as online gamers are not happy with the Centre imposing 28 per cent GST on gaming.

They added humour to the situation by creating memes which also shared their displeasure over the newly-imposed tax.

On the other hand, The GST Council also decided to exempt cancer-fighting drugs and medicines for rare diseases from the levy, she said.

Also, GST on satellite launch services provided by private operators has been exempted, she added.