28 percent GST to be charged
Excelsior Correspondent
JAMMU, Mar 23: The UT Government proposed to bring online money gaming, casinos and horse racing under the ambit of Goods and Services Tax (GST) at the rate of 28 percent.
The amendments have been proposed in Jammu and Kashmir Goods and Services Tax (Amendment) Bill, 2025 introduced in the Legislative Assembly yesterday by Deputy Chief Minister Surinder Choudhary on behalf of Chief Minister Omar Abdullah, who holds charge of the Finance Department.
Presently, the GST is applicable on betting, gambling and lottery.
The 50th GST Council meeting had recommended 28 percent GST on online money faming, casinos and horse racing on face value, 28 percent GST on both skill-based and chance based online games (including fantasy sports, casinos and other forms on online gambling) and 28 percent GST on the total value of the consideration received in online gaming (earlier it was on margin money/platform fee at the rate of 18 percent on skill based online games) i.e. 28 percent GST on initial purchase of casino chips.
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Earlier for a game of skill such as e-sports, puzzles and some card games, 18 percent GST was chargeable only on the platform’s commission/service fee or on gross gaming revenue. For a game of chance, including gambling at casinos, 28 percent GST was chargeable on the total bet value. Now, 28 percent GST will be charge on full face value on online gaming, casinos and horse racing
The bill will be taken up for passing in the Legislative Assembly on March 25.
The bill seeks to substitute specific actionable claim for the present entries of lottery, betting and gambling so as to provide clarity regarding taxability of actionable claims involved in or by way of casinos, horse racing and online gaming.
Besides online gaming and online money gaming, the Input Service Distributor will also be under the ambit of GST.
“A person who organizes or arranges, directly or indirectly, supply of specified actionable claims including a person who owns, operates or manages digital or electronic platform for such supply shall deemed to be a supplier of such actionable claims whether they or supplied by him or through him,” the bill proposed.
It said virtual digital assets shall have the same meaning as assigned to it in the Income Tax Act.
The bill also seeks to amend Schedule III to the Jammu and Kashmir Goods and Services Tax Act so as to provide that activity of apportionment of coinsurance premium by the lead insure to the co-insures for insurance services jointly supplied by the lead insurer and the co-insurer to the insure in coinsurance agreements shall be treated as neither supply of goods nor supply of services, provided that the lead insurer pay tax liability on the entire amount of premises paid by the insured.
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