Karnataka Govt Amends GST Law To Tax Online Gaming, Casinos At 28% Rate

Karnataka government has enacted an Ordinance amending the state’s Goods and Services Tax (GST) law to impose a 28 per cent tax rate on online gaming, casinos and racecourses. 

The development comes in response to the urgent need to meet the 1 October deadline set by the GST Council for the rollout of the new tax rate. Governor Thawar Chand Gehlot has given his assent to the Ordinance draft, which was previously approved by the state cabinet. 

The decision to tax online gaming, casinos and racecourses at a 28 per cent rate was made during the GST Council's meeting on 11 July. Subsequently, on 2 August, the council reaffirmed its commitment to expeditiously complete the process of amendments and ensure that the new tax rate takes effect from 1 October.

It is worth noting that the Central Government had already taken its part by amending the necessary laws and presenting the bills before the Parliament last month. This move was essential to enable the states to align their GST laws with the revised tax rates.

The Karnataka government is now poised to issue an official notification, specifying the date from which the new State Goods and Services Tax (SGST) rate will come into effect. This notification will be issued in response to directives from the Ministry of Finance (MoF), which will determine the date of implementation of the new Central Goods and Services Tax (CGST) rate.