The decision to impose a 28% tax on the full face value of bets placed on online gaming will be implemented from 1 October said Finance Minister Nirmala Sitharaman after 51st GST Council meeting. The GST Council will review the implementation of 28% GST on online gaming, casino after 6 months.

Nirmala Sitharaman said Delhi finance minister opposed the levy of the tax on online gaming while Goa and Sikkim wanted the levy on GGR (gross gaming revenue) and not on face value.

Sitharaman, however, said other states ranging from Karnataka to Gujarat, Maharasthra and Uttar Pradesh wanted the decision taken at the last meeting to be implemented. The new levy, after required changes are made in the central and state laws, is likely to come into effect from October 1, she said.

After the 51st GST Council meeting, Union Finance Minister, Nirmala Sitaraman says, "...The council recommended that valuation of supply on online gaming & 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..."

The GST Council -- the highest decision making body of the new indirect tax regime that comprises Union finance minister and representatives of all states -- discussed the language of amendments that will be needed to enabling taxing online gaming, she said after the panel meeting.