Despite the efforts of Delhi, Goa and Sikkim to reopen the issue, the GST Council chose to proceed with the levy of 28% GST on the face value of chips purchased at casinos and the bet amount for online games. The Centre and the states will now alter the laws in order to implement the tax in October.
To tighten the noose around foreign companies, which may evade tax, the Council has proposed their mandatory registration with GST authorities. The government plans to invoke provisions of the Information Technology Act to ensure that access to consumers is blocked for those who do not register.
Finance Minister Nirmala Sitharaman stated that most states, ranging from West Bengal and Chhattisgarh to Uttar Pradesh, Himachal Pradesh, Maharashtra, and Karnataka, wanted the last meeting's decision to be implemented as soon as possible, resulting in the Council clearing the amendments to the Central law, which will be replicated by the states.
Delhi finance minister Atishi wanted the GST Council to review its earlier decision to tax online gaming, a proposal that was brushed aside by most states. Goa and Sikkim supported a higher levy but said the decision would hurt their interests, given the presence of casinos in the two states.
With Goa and Sikkim finding support from the others, such as Andhra Pradesh, it was decided to review the tax six months after implementation, said Sitharaman, who chairs the all-powerful body.