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EXCLUSIVE: Government may increase GST on online gaming, casinos and horse racing to 28%; sharp correction in Delta Corp, Nazara Technologies stocks
Online gaming, casinos and horse racing will be subject to a 28 per cent Goods and Services Tax (GST). In a meeting of Group of Ministers (GoM) that was held today, it was unanimously decided that a 28 per cent levy will be imposed on these services
Online gaming, casinos and horse racing will be subject to a 28 per cent Goods and Services Tax (GST). In a meeting of Group of Ministers (GoM) that was held today, it was unanimously decided that a 28 per cent levy will be imposed on these services.
The current GST rate is at 18 per per cent.
The GST will be imposed on initial betting or gaming amount and not on every bet or winning amount. Zee Business has learnt that a report on this will likely be submitted in a couple of days. Tarun Sharma has this detailed report.
Sharma said that a consensus has been arrived at on the GST levy over Online gaming, casinos and horse racing. However, the GoM is of the view that a concession should be given and levy should be made only on the initial amount and not on the billing amount.
He said that the GoM will submit its report to the Ministry of Finance and later be taken in the GST Council meeting, Sharma further said citing his sources.
Though the GST is being raised to 28 per cent, the charges will apply only on the initial amount, Sharma said.
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Gaming stocks like Delta Corp and Nazara Technologies reacted to this new immediately after the newsbreak.
Watch Zee Business Tweet Video Below:
ऑनलाइन गेम्स, कसीनो के #GST दरों पर बैठक खत्म
ऑनलाइन गेम्स, कसीनो, हॉर्स रेसिंग पर 28% GST संभव
शुरुआती बेटिंग, गेमिंग अमाउंट पर लगेगी GST
— Zee Business (@ZeeBusiness) May 18, 2022
At 2:53 pm, the shares of Delta Corp were trading at Rs 227.50 on the NSE and were down nearly 6 per cent from the Tuesday closing price. Maenwhile, Nazara Technologies shares were trading at Rs 1236.90 around this time and were down nearly 1 per cent. Nazara stocks were down by over 2 per cent at the time of the breaking of the news.
Zee Business Managing Editor called this a big negative for the gaming companies Delta and Nazara.
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