GST collections see 8.9 pc YoY growth at Rs 1.87 lakh crore in October
It is the eighth consecutive month when GST collections stayed above the Rs 1.7 lakh crore mark.
India is likely to collect up to Rs 14,000 crore in goods and services tax (GST) next financial year by taxing online gambling companies, Revenue Secretary Sanjay Malhotra told Reuters on Saturday.
The government in October imposed a 28% tax on funds that online gaming companies collect from their customers for every bet, shocking a nascent $1.5 billion industry that is backed by global investors.
The government had defended the move, citing concerns about addiction. The Revenue Secretary said the industry has stabilised, but it is early to make conclusive remarks.
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A review of the framework to tax online gambling companies will be conducted by April, but that doesn’t mean tax rates would be changed, he said.
He added that the government’s overall GST collections have averaged to Rs 1.7 trillion per month.
“We are expecting average monthly collection of Rs 1.80 trillion to Rs 1.85 trillion from next fiscal,” he added.
Notably, the government in October imposed a 28% tax on funds that online gaming companies collect from their customers for every bet, shocking a nascent $1.5 billion industry that is backed by global investors.
The government had defended the move, citing concerns about addiction. GST authorities are already investigating a large number of online gaming companies for alleged evasion of GST dues and have also sent notices to many of them. In July 2023, the 50th GST Council passed a crucial decision for the online gaming industry, casinos and the horse racing businesses.
The GST Council with the help of the Group of Ministers, made recommendations on the imposition of GST on online gaming, as well as putting an end to the debate over “games of skill or chance.”
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