India: Bihar amendment to replace ordinance on 28% tax rate for online gaming

An amendment bill has been tabled in the state assembly.

India.- The Bihar state government has presented a bill in the assembly to replace an ordinance on the new 28 per cent GST on online gaming with an amendment. The GST Council established the new uniform tax on the full face value of bets in online gaming, casinos, and horseracing in July.

State finance minister Vijay Kumar Choudhary said: “The Union Ministry of Finance issued notifications for implementing 28 per cent uniform GST on online money games, casinos, horse racing, betting, gambling, and lottery in September. The new tax regime has been in force in the state since October 1. Now the promulgated ordinance will be replaced by the amendment bill.”

Online gaming companies have raised concerns that the new tax rate could drive players to unregulated offshore betting platforms, ultimately leading to a potential decline in tax revenue. According to G2G News, Bihar’s IT minister, Israil Mansuri, has expressed support for gaming companies, recognising the challenges that the new regime might pose. He pointed out that the taxation structure could result in tax surpassing company revenues, rendering operations unsustainable.