New Delhi: On Congress said on Thursday that all gaming is not gambling and that there is something very wrong with the government's tax theology and its much-touted focus on innovation and startups.Taking a swipe at the government, Congress spokesperson and Lok Sabha MP Manish Tewari said, “All gaming is not gambling. First the government killed the crypto currency ecosystem by imposing a 1 per cent TDS and 30 per cent Tax on gains-charged as income from other sources.
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“It ensured that the crypto Eco system moved out of India & now it is hell bent on destroying the online gaming industry by imposing 28 per cent GST,” the former Union minister said.
“Something is terribly wrong with the Government’s Tax theology and it’s much touted focus on innovation and start up’s,” Tewari added.
The GST Council agreed on Wednesday to impose the 28% levy on online gaming and casinos, therefore his comments came a day after that decision was made, suggesting that the levy will be imposed starting on October 1.
The council also resolved that after the GST levy enters effective on October 1, it will be reviewed after six months and, if necessary, changes will be made.
The decision was made during Finance Minister Nirmala Sitharaman's virtual GST council meeting.
In other words, the GST Council maintained status quo on it’s July 11 decision to levy 28 per cent GST on online gaming and casinos on face value.
Sitharaman told reporters following the meeting that the decision to charge GST at the rate of 28% on online gambling and racing had been reached nearly unanimously.—Inputs from Agencies