GST Council to finalise online gaming tax on Aug 2

New Delhi, July 27 (KNN) India's Goods and Services Tax (GST) Council will meet on August 2 to decide a 28% tax on funds that online gaming companies and casinos collect from customers, and finalise other rules, reported Reuters.

A government official said on Wednesday that the council, chaired by Union Finance Minister Nirmala Sitharaman and comprising state finance ministers will meet next month.

They will decide if the tax should be imposed only once on the total funds deposited to play an online game, or each time a bet is placed - something the industry fears will lead to repeated taxation.

On July 11 the government first announced its plan for the tax.

The gaming industry and its investors have asked it to review the decision, which will increase the tax burden on both companies and consumers.

Last week, Tiger Global, Peak XV and Steadview Capital were among 30 foreign and domestic investors that asked Prime Minister Narendra Modi to review the tax, saying the levy would adversely impact USD 4 billion in prospective investments.  (KNN Bureau)