Delhi joined Goa to raise concerns over the tax demands issued to online gaming companies and casinos and pointed out it amounts to retrospective taxation.
The concerns were raised at the GST council meeting held at Delhi where from Goa Chief Minister Pramod Sawant and Transport Minister Mauvin Godinho attended.
Atishi as Finance Minister represented Delhi Delhi and said that tax notices were being sent to these e-gaming companies with demands calculated at the higher 28% rate for six years retrospectively although this rate was only implemented from October 1.
The concerns raised by both Goa and Delhi related to the impact of the high taxation on new investments.
In the GST council meetings of July and August, it was decided that a 28% GST will be applicable to the full face value of bets placed on online gaming platforms, horse racing and casinos.
These activities were classified as actionable claims, similar to lottery, betting, and gambling, under GST.
The related amendments to Central GST and Integrated GST statutes were passed by Parliament and became effective from October 1.
Meanwhile, Union Revenue Secretary Sanjay Malhotra clarified that a 28% GST rate was already being levied on online gaming and casinos prior to these tax demands.
Malhotra pointed out that the Directorate General of GST Intelligence (DGGI) is an independent body and interference in their process is not possible.
