Karnataka government promulgates ordinance to impose 28% tax on online gaming

The Karnataka government on Friday promulgated an ordinance to amend the Karnataka Goods and Services Tax Act to facilitate the imposition of 28 per cent GST on online gaming. The additional tax will also be imposed on racecourses, and casinos following the consent of Governor Thawarchand Gehlot.

It is estimated that the state would get Rs 1,500 crore in revenue following the implementation of additional tax, according to Commissioner for Commercial Taxes, C. Shikha.

The move by the state government comes ahead of the Central government's proposed implementation of the tax regime from October 1.

The Karnataka government has promulgated the ordinance as the state Legislature is not in session.

Karnataka is one of the major states to promulgate the ordinance after Maharashtra and Haryana. 

However, the new legislation will not affect the existing laws and will not prohibit, restrict or regulate betting in casinos, gambling, horse racing, lottery and online gaming, sources stated.

The sources also added that the charging of additional taxes won't legitimise betting and criminal activity with the betting activities will be dealt with criminal prosecution. 

The Ccentral government had directed the states to pass the ordinance in assemblies or promulgate the ordinance by September 30 to implement 28 per cent GST on online gaming from October 1.