The 51st meeting held by the Goods and Services Tax (GST) Council on August 2 has decided that it will review the 28% tax levied on casinos and online gaming in six months after it has come into effect from October 1, 2023.

The council has recommended that the valuation of the supply of online gaming and claims will be made based on the amount paid or payable that has been deposited with the supplier by the player.

The finance minister said everyone agreed about the same thing except a few states who opposed the decision.

Along with the Delhi finance minister, who opposed the levy of the tax on online gaming, Goa and Sikkim wanted the tax to be levied on the gross gaming revenue and not the face value.

FM Sitharaman said in a post-meeting press conference, “The council recommended that valuation of supply on online gaming and actionable claims in casinos may be done based on the amount paid or payable or payable to or deposited with the supplier by/or on behalf of the player, excluding the amount entered into the games, bets out of winnings of previous games and not on the total value of each bet placed…”

On the note of the tax being imposed on online gaming and casino, the shares of Delta Corp have plummeted more than 25% in the last one month.

At 11:00 am, the shares of Delta Corp were trading at Rs 188.60 or 4.31% below its previous close on NSE.