Government: Zero Retrospective Tax on Online Gambling Portals and Casinos
New Delhi – Saturday the government said it does not impose retrospective taxes on online gambling portals and casinos and that actions against such organizations are in compliance with the law. In the GST Council, the State of Goa called for a review of the casino tax six months after its introduction, while New Delhi expressed concern about the impact of the 28% tax on the total amount of bets in the industry.
Finance Minister Atisha Deri demanded that the levy be canceled. She made this demand at the last meeting and even after approval of the plan, which was decided after three years of consultations.
Several members have raised the issue of retrospective taxation. But it is worth assuming that this has long been a legal requirement. Because Internet gambling is a betting activity, those obligations already existed.
Revenue Minister Sanjay Malhotra told reporters after the GST Council meeting that he has now collected (28%GST) on account of gambling and gaming.
Tax authorities have served notices totaling Rs 1.5mn to gambling companies, seeking payment from them. The gambling companies, on the other side, are appealing the demands and some are taking the matter to court. The government claims that the tax has already been paid and that the gaming companies may be exaggerating the impact of the tax.
The beginning of the month marked the beginning of the introduction of a new tax regime for the online industry.
Malhotra announced that the 18 states and Union Territories with assemblies have so far made the required amendments to the GST laws of their states.
Given the fact that the new tax regulation comes into force on October 1, 13 more countries are still in the process of making amendments.