On Thursday, the West Bengal assembly successfully passed the West Bengal Goods and Services Tax (Second Amendment) Bill, 2023, marking a significant move in the taxation landscape.
The bill, once enacted, will subject online gaming, horse racing, and casinos to the highest Goods and Services Tax (GST) rate of 28%, to be calculated on the entire face value of the bets placed.
Championing this legislation, Minister of State for Finance, Chandrima Bhattacharya, expressed optimism that the implementation of this bill would substantially boost the state’s revenue. West Bengal is among the states advocating for the imposition of the highest GST rate on activities such as online gaming, aligning with the belief that these pursuits should bear a heavier tax burden.
Bhattacharya asserted that online gaming, casinos, and horse racing are games of chance rather than skill, emphasizing that the right to participate and the right to win cannot be disentangled in these scenarios. As a member of the GST Council, she revealed that West Bengal has consistently supported the idea of levying the highest rates on such activities.
However, Bhattacharya disclosed a delay in presenting the bill in the assembly, attributing it to the governor’s extensive queries on the matter. The GST rates for these activities had already come into effect in numerous states starting from October 1 of the current year.
In an additional development, the minister highlighted that the state is still awaiting the disbursement of Rs 467 crore from the Centre, earmarked as Inter-State Goods and Services Tax (IGST). This financial delay adds another layer to the fiscal landscape, further emphasizing the significance of the newly passed bill in bolstering the state’s revenue streams.
On a related note, the Kerala government cabinet has proposed an ordinance for the amendment of the Kerala Goods and Services Tax (KGST). The decision was finalized during a cabinet meeting held at Rama Nilayam in Thrissur on December 6 (Wednesday).
Read More: Online Money Gaming and Gambling: Kerala Govt Cabinet proposes Ordinance for GST Amendment
This decision comes on the heels of the Union Finance Ministry’s move in September, where notifications were issued to implement a uniform 28% Goods and Services Tax (GST) on online money gaming, casinos, and horse racing.
The Union Government’s decision was aligned with the 50th GST Council’s resolution to impose a 28% GST on the full face value of transactions related to online gaming, casinos, and horse racing.
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