LI Network
Published on: November 07, 2023 at 11:30 IST
The Bihar government took a significant step on Monday by presenting an amendment bill in the state assembly to replace an ordinance, facilitating the implementation of a 28 percent Goods and Services Tax (GST) on online gaming.
The imposition of an additional tax on online gaming, racecourses, and casinos has been in effect in Bihar since October 1, following a notification from the Central government in September.
State Finance Minister Vijay Kumar Choudhary introduced the “Bihar Goods and Services Tax (Second Amendment) Bill-2023” on the first day of the winter session of the state legislature.
He explained, “The Union Ministry of Finance issued notifications in September for the implementation of a 28 percent uniform GST on online money games, casinos, horse racing, betting, gambling, and lotteries. This new tax regime has been in operation in the state since October 1. The previously promulgated ordinance will now be replaced by the amendment bill.”
The state is expected to witness an increase in revenue as a result of this higher tax rate, according to Choudhary.
The Goods and Services Tax (GST) Council had, during its meeting in August, reaffirmed its earlier decision to levy a 28 percent tax on the total face value of bets placed on online gaming, casinos, and horse racing. The council had determined that the 28 percent GST would be effective from October 1. Previously, the online gaming industry was subject to an 18 percent tax on gross gaming revenue (GGR).
GGR represents the difference between the total wagers made by players and the winnings paid out. Minister Choudhary clarified, “A 28 percent tax will be levied on the amount deposited by a player in a game. For example, if a player deposits Rs 2,000 in a game, they will be required to pay a GST of 28 percent, amounting to Rs 560.”