28% GST to Be Imposed on Online Gaming Companies Engaged in Betting and Gambling: Govt of India:

28% GST to Be Imposed on Online Gaming Companies Engaged in Betting and Gambling: Govt of India The Directorate General of GST Intelligence (DGGI) informed the Supreme Court on Monday that the Online gaming companies that are involved in betting and gambling, and the money that players put into these games, are subject to taxation at 28% GST. Additional Solicitor General N. Venkataraman told a bench led by Justice JB Pardiwala that the department is not imposing tax on online or offline games but instead on the uncertain results of those games, which are almost the same as betting or gambling. He further added that Speculative outcomes or the uncertain results are important for taxation. It doesn’t matter whether rummy is seen as a game of skill or chance. These types of games are still seen as gambling, and online activity is also treated as betting and gambling. He also asked this question that if playing with stakes is treated gambling and is not excluded, how can gaming companies argue to the contrary? The Additional Solicitor General (ASG) explained that online gaming companies have been paying 18% GST. But since their activities actually fall under betting and gambling, they should be charged 28% GST as per the Central Goods and Services Act.