On Saturday, June 22, 2024, the GST (Goods and Services Tax) Council in India made the decision to uphold the steep 28% tax levied on all online gambling activities.
More recently, in September 2024, the GST Council decided to keep a 28% tax in place and said that reducing this to a lower amount was not up for discussion.
Despite the sour note that the decision made, revenue generated from online casino gambling activities since October 1, 2023, increased by around 40%, which further reinforced the GST Council’s decision not to reduce the 28% rate currently imposed.
Let’s dive straight in to learn more about the current legal status of online gambling in India.
What is the 28% GST on online gaming?
On October 1, 2023, the Indian Government/GST Council enforced a 28% GST (Goods and Service Tax) applied to real money online gambling activities in India.
Despite many labelling the decision the death knell for India’s iGaming industry, with many operators choosing to exit the Indian market or stay and be forced to pay one of the harshest online gambling taxation fees, the industry has grown by a whopping 30% year-on-year.
Here is a brief summary of the build-up to the 28% GST before it was introduced to include the iGaming sector:
- The GST Council in India announced that it would impose a 28% Goods and Service Tax at full value on all real money wagers placed on sports betting markets, online casino games, lotteries, horse racing, and other legally permitted online gambling activities back in August 2023 and that it must be collected by the operator of each iGaming site
- After months of speculation and controversy, the 28% GST regime on all online gambling activities was officially brought in by India’s finance ministry on October 1, 2023
- The decision means that all GST payments made by Indian iGaming business owners that operate inside the law have faced an incredible 1,000% mark-up, which led to some business owners exiting the Indian market, in what many believed would be the beginning of the end of the industry
Has the tax hike from 10% to 28% worked?
Broadly speaking, tax officials and experts who monitor the tax system in India agreed that it was essential for the central Indian government to start exploring new taxation sectors, and the most obvious sector was the online casino and sports betting industry (more commonly referred to as the iGaming industry).
Since the implementation of the hike, only a few of the top I-gaming sites in India have stayed, and most of them have openly criticized the recent decision in September 2024 to uphold the 28% GST. However, despite the resistance, it seems to work, as the industry continues to show impressive growth.
The tax hikes correlated with a provision in the 2017 Schedule III of the GST Act, and it became a reality last year after the GST Council and Central Indian Government approved both the Central Goods and Services Tax (Amendment) Bill and Integrated Goods and Services Tax (Amendment) Bill.
The new tax regime is part of a much wider initiative by government authorities (at the state and central government levels) to improve how the real money online gambling industry is regulated.
Before it was implemented, the iGaming industry in India had been compared to the American Wild West, as the legal and regulatory framework and general governing of iGaming operators and how legally permitted operators collected tax was immature and had few effective controls in place.
According to reports, in the past six months alone, GST authorities across the nation have raked in a mouth-watering Rs 6,909 crore from online gambling activities, showing an impressive 412% increase. Before the 28% GST tax hike, it stood at 18%.
There will likely be reviews over the coming months, but most operators aren’t holding their breath for the desired outcome, which is to reduce the 28% tax levy to 18% (or lower), as this is not likely to happen any time soon.
What are the safest Indian online casinos in 2024?
The safest Indian online casinos in 2024 are currently controlled by some of the iGaming industry’s most reputable companies with excellent standing in the industry.
The top brands are typically fully licensed and regulated by one or more of the industry’s globally renowned gaming commissions/licensing authorities, and they use a range of cybersecurity measures, including 128-bit or higher cryptographic encryption and data privacy and protection measures to keep players’ money and account details out of harm’s way.
Today’s best Indian online casinos have thousands of computer-generated and live dealer games from around 30 to 50 or more market-leading game development studios and software providers, meaning the results/outcomes in the games are fair and have high or above-average return to player (RTP%) payout rates.
They provide 24-hour, friendly, and professionally trained support agents, demonstrating excellent customer service standards, and they are free to join, accepting a broad range of secure Indian online payment methods.
Final thoughts
Before signing up to an online casino to play your favorite games, always check the expert reviews to see if that site is safe. Only sign up to trustworthy Indian-focused sites that are fully licensed and regulated by reputable authorities, and remember to gamble sensibly at all times whenever you log in to play online casino games or place sports bets.
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