K'taka Cabinet Defers Ordinance To Tax Online Gaming, Casinos And Racecourses At 28%
The Karnataka Cabinet has decided to defer the Ordinance aimed at amending the state's Goods and Services Tax (GST) law to impose a 28 per cent tax rate on online gaming, casinos and racecourses.
The decision was made during a Cabinet meeting held on Thursday, where the draft proposal was referred to the law and parliamentary affairs departments for procedural vetting and subsequent presentation at the next meeting.
The urgency behind this decision is to meet the deadline set by the GST Council, which mandates the implementation of the new tax rate by 1 October 2023. The GST Council, during its meeting on 11 July, had taken the decisive step to subject online gaming, casinos, and racecourses to a 28 per cent tax rate, calculated on the full-face value of bets placed.
Subsequently, during another meeting held on 2 August, the GST Council reiterated its commitment to expeditiously carry out the necessary amendments to enable the implementation of the new tax rate from 1 October 2023.
