The All India Gaming Federation (AIGF) has reportedly reached out to the finance ministry requesting the suspension of the 28 percent Goods and Services Tax (GST) notification on online gaming that was set to go into effect on October 1. This move comes in response to concerns about the implementation of the amended GST law provisions for taxing e-gaming, casinos, and horse racing.
The finance ministry had issued a notification on Saturday, notifying October 1 as the date to implement these amended GST law provisions.
AIGF has urged the revenue secretary to suspend the amendment notice until all states make amendments to their respective State GST laws, in accordance with the judgment of the Supreme Court of India. As per the sources, approximately 15 states have yet to make changes to their State GST laws, and online gaming companies registered in these states could face challenges due to the lack of uniformity in the statutory framework.
The federation is concerned that the Centre's notification could set a precedent for unilateral actions by various states in different aspects of GST in the future.
AIGF has emphasized that adapting to these substantial changes operationally will be a significant challenge for online gaming companies, especially when there is no consistency in the legal framework across states.