LUCKNOW: The UP assembly on Wednesday formally passed the bill to impose 28% GST on the online gaming, casinos, lottery and horse racing events in the state.
The bill, introduced by the state parliamentary and the finance minister Suresh Khanna, envisaged application of 28% tax at the entry level, instead of the Gross Gaming Revenue (GGR) which was levied from the promoter or its agent.
Speaking on the floor of the house, Khanna said that the online gaming, lottery, casinos and horse racing did not qualify as the game of skill but as game of chance. He said that earlier, the state government used to levy tax on GGR which was susceptible to manipulation by the promoter or the service provider. He said that the promoter of the game or any of its agents will also be required to get registered with the government.
The development came almost two months after the state government promulgated an ordinance to levy the said quantum of tax on the online gaming industry. Earlier, the government had been imposing 18% GST on the online gaming industry which was eventually shared between the state and the Centre in equal proportion.
The ordinance followed the Centre’s direction to impose the higher tax from October 1. Since the house was not in session, the UP government promulgated an ordinance for the purpose.
The issue had cropped up before the GST council more than two years ago. Subsequently, the matter was taken up by a Group of Ministers (GoM) which formally decided to levy higher tax. Khanna said that the decision to take higher tax was initiated at the call of the UP government.
Accordingly, the Centre asked the states to implement the measure either by promulgating an ordinance and also by getting a bill passed in the state legislatures. This way UP has joined the league of 21 states, including Maharashtra, Karnataka and Madhya Pradesh, which have got it passed by their respective legislatures. The states which have promulgated an ordinance include J&K, Jharkhand, Rajasthan, Telangana, Kerala, Chhattisgarh and Punjab.
SP MLA from Naugaon Sadat in Amroha, Samar Pal Singh demanded that the online gaming industry be completely banned in the state as it was pushing generation after generation into an abyss.
Khanna, however, maintained that “it was not possible” to arrest the fast emergence of the online gaming system which has been attaining much popularity, especially amongst the young generation. He said, as per an estimate, around 14 crore people in the country are taking part in the online gaming industry. “The state government has thus decided to check it and discourage it through the best possible steps. Imposing higher tax is one such step,” he said.
The bill, introduced by the state parliamentary and the finance minister Suresh Khanna, envisaged application of 28% tax at the entry level, instead of the Gross Gaming Revenue (GGR) which was levied from the promoter or its agent.
Speaking on the floor of the house, Khanna said that the online gaming, lottery, casinos and horse racing did not qualify as the game of skill but as game of chance. He said that earlier, the state government used to levy tax on GGR which was susceptible to manipulation by the promoter or the service provider. He said that the promoter of the game or any of its agents will also be required to get registered with the government.
The development came almost two months after the state government promulgated an ordinance to levy the said quantum of tax on the online gaming industry. Earlier, the government had been imposing 18% GST on the online gaming industry which was eventually shared between the state and the Centre in equal proportion.
The ordinance followed the Centre’s direction to impose the higher tax from October 1. Since the house was not in session, the UP government promulgated an ordinance for the purpose.
The issue had cropped up before the GST council more than two years ago. Subsequently, the matter was taken up by a Group of Ministers (GoM) which formally decided to levy higher tax. Khanna said that the decision to take higher tax was initiated at the call of the UP government.
Accordingly, the Centre asked the states to implement the measure either by promulgating an ordinance and also by getting a bill passed in the state legislatures. This way UP has joined the league of 21 states, including Maharashtra, Karnataka and Madhya Pradesh, which have got it passed by their respective legislatures. The states which have promulgated an ordinance include J&K, Jharkhand, Rajasthan, Telangana, Kerala, Chhattisgarh and Punjab.
SP MLA from Naugaon Sadat in Amroha, Samar Pal Singh demanded that the online gaming industry be completely banned in the state as it was pushing generation after generation into an abyss.
Khanna, however, maintained that “it was not possible” to arrest the fast emergence of the online gaming system which has been attaining much popularity, especially amongst the young generation. He said, as per an estimate, around 14 crore people in the country are taking part in the online gaming industry. “The state government has thus decided to check it and discourage it through the best possible steps. Imposing higher tax is one such step,” he said.