UP assembly passes bill for imposition of high taxes on online gaming, casinos, lottery

By: Pune Pulse

November 29, 2023

Pune: On Wednesday, the Uttar Pradesh assembly officially approved a bill that would impose a 28% GST on online gaming, casinos, lottery, and horse racing events within the state. The bill was introduced by the state parliamentary and finance minister, Suresh Khanna, and proposes a tax of 28% at the entry level, rather than on the Gross Gaming Revenue (GGR) collected by the promoter or their agent.

As per the information provided, during his speech in the legislative assembly, Khanna expressed his view that online gaming, lottery, casinos, and horse racing should not be considered games of skill, but rather games of chance. He highlighted that previously, the state government imposed taxes on Gross Gaming Revenue (GGR), which could be easily manipulated by the game promoter or service provider. Khanna emphasized that both the game promoter and their agents must now register with the government.

As per the information received, the higher tax was imposed on October 1 as per the directive of the Centre, leading to the promulgation of an ordinance by the UP government due to the absence of a session in the house. This matter was previously brought up in front of the GST Council over two years ago. Following that, a Group of Ministers (GoM) took up the issue and officially decided to implement the higher tax. Khanna stated that the UP government was the one who initiated the decision to impose the higher tax.

Consequently, the Centre has urged the states to implement the measure through the promulgation of an ordinance and the passage of a bill in their respective state legislatures. Uttar Pradesh has now become the 22nd state to adopt this measure, following in the footsteps of Maharashtra, Karnataka, and Madhya Pradesh, among others, who have passed it through their legislatures.

States such as J&K, Jharkhand, Rajasthan, Telangana, Kerala, Chhattisgarh, and Punjab have already promulgated an ordinance. Meanwhile, Samar Pal Singh, an SP MLA from Naugaon Sadat in Amroha, has called for a complete ban on the online gaming industry in the state, citing its negative impact on future generations.