The Centre has clarified that the goods and service tax (GST) being levied on online gaming companies is not being levied retrospectively.

The government told GST Council members at their meeting on Saturday there had been no change in the law. Certain online gaming companies that involved betting always attracted 28 per cent GST.

“The members were informed that the levy was not retrospective. The liability to pay GST at 28 per cent has always existed for gaming companies that provide betting or gambling options,” revenue secretary Sanjay Malhotra told reporters at a briefing after the meeting.

The revenue secretary reiterated that 28 per cent GST was levied on online gaming and casinos even before.

Malhotra further said that some states such as Delhi and Goa had raised the issue of online gaming companies facing GST demand notices for alleged evasion.

“There were discussions on charges (tax demand notice) on these companies, retrospectively.

“Because DGGI is an independent body, there cannot be any interference. The (GST Council) chairperson said she would make clarifications available to DGGI if required,” Chhattisgarh deputy chief minister T.S. Singh Deo, also a member of the GST Council, said.

States were also required to pass amendments to the state GST (SGST) laws.

So far, 18 states have passed the amendments either in their assemblies or through ordinance.

The remaining 13 states would also be passing the amendments, with effect from October 1 in due course.