Offshore Gaming Operator Entities Mandated to Register: GST Council

The 51st GST Council met under the Chairpersonship of Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman via video conferencing in New Delhi. The meeting was also attended by Union Minister of State for Finance Shri Pankaj Chaudhary besides Finance Ministers of States & UTs (with legislature) and senior officers of the Ministry of Finance & States/ UTs.

The Council also recommended that offshore gaming operator entities be mandated to register. Since the GST Council's July 11 decision to impose a 28% tax on the full face value of online gaming, firms in the real money gaming sector have raised concerns that the high tax burden could result in users of such platforms migrating to illegal offshore gambling and betting platform

Only licensed operators are allowed to offer such services, and that too within the territorial boundaries of a particular state. Offshore websites, on the other hand, operate from countries like Malta and Curacao and allow people from across India to engage in betting and gambling. As a result, they violate state-specific gambling and police laws and also contravene a clutch of central laws. These include foreign exchange and money laundering regulations, consumer protection norms and content standards. 

Offshore betting and gambling websites also expose users to a wide range of real-world risks. These include financial distress, future unemployment, and substantially high mortality risk. The mandatory registration will help to prevent misuse of these sites and gaming.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates