“…The council recommended that valuation of supply on online gaming & actionable claims in casinos may be done based on the amount paid or payable or payable to or deposited with the supplier by/or on behalf of the player, excluding the amount entered into the games, bets out of winnings of previous games & not on the total value of each bet placed…”, the minister announced at the briefing after the meeting.

The finance minister said Delhi finance minister opposed the levy of the tax on online gaming while Goa and Sikkim wanted the levy on GGR (gross gaming revenue) and not on face value.

The panel had at its last meeting decided to levy a 28 per cent GST on full face value of bets placed and Wednesday’s meeting was to deliberate on the tax law changes that would be required to implement it. She added that there will be a review of the levy after six months of its implementation.

“It (28% GST on online gaming & casinos) is expected to be implemented from 1st October… It is also decided that this decision will be reviewed after six months after it is implemented. When I say six months it does not mean starting from today, it begins after when it is implemented”, Sitharaman added.

The GST council, which is the highest decision making body of the indirect tax regime which comprises the finance minister and representatives of all the states, discussed the language of amendments needed to enable taxing online gaming.

On the issue of betting, revenue secretary Sanjay Malhotra said,”Betting is already liable to GST today & it does not make it legal…Betting & gambling are illegal & liable to tax. Taxing online gaming will not result in legalising online games in those states which have banned them…”.