In the 51st GST Council meet on Wednesday, the GST Council decided that 28 per cent GST will be levied at face value of entry level bets placed in online gaming, casinos and horse racing.

“The valuation of supply of online gaming and actionable claims in casinos may be done based on the amount paid or payable to or deposited with the supplier, by or on behalf of the player (excluding the amount entered into games or bets out of winnings of previous games or bets) and not on the total value of each bet placed,” said the Union Minister for Finance & Corporate Affairs Nirmala Sitharaman via video conferencing.

However, few of the states like Delhi, Sikkim and Goa have shown disagreement.

According to the Finance Minister, Nirmala Sitharaman, Minister from Delhi wanted the  review of the entire decision, particularly on the online gaming.

Likewise, Sikkim and Goa, she said, which have interests in casinos, expressed that the decision taken does hurt their interests, although they're in favour of a higher taxation. Both want 28% GST to be levied on the gross gaming revenue.

Meanwhile, Tamil Nadu, which has banned online gaming, has sought the amendment to clarify that the GST would not be levied in the state.

However, most of the states were in favour of the implementation of the decision at the earliest and it was decided that the Council would try to pass the amendment to their GST Acts in the ongoing assembly sessions or would issue an Ordinance to the effect. The Centre is likely to table the amendment to the Central GST Act in the current Monsoon Session of Parliament.

The Finance Minister further stated that the decision of the revised GST tax is likely to be implemented from October 1.

She also said that the Council will review the tax regime six months after the 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 said.

The GST council in its meeting discussed the language of amendments needed to enable taxing online gaming.