The GST Council on Wednesday decided that 28 per cent GST will be levied at face value of entry level bets placed in gaming platforms and casinos, even though three states — Delhi, Goa and Sikkim — expressed dissent.

The Centre will bring amendments to the Central GST law in the ongoing monsoon session of Parliament, following which states will pass the amendments.

Offshore gaming platforms will have to register with GST authorities and pay taxes, failing which the government will invoke provisions of IT Act and block those sites.

The amended provisions in the GST law, which would specifically define online gaming, online money gaming, virtual digital assets used to pay for online games, and supplier in case of online gaming, will be effective from October 1.

The decision will be reviewed after six months of its implementation by the GST Council on April 2024.

Finance minister Nirmala Sitharaman said for the purpose of GST levy, the valuation of supply of online gaming and casinos will be done based on the amount paid at the time of entry into the game and not on what they pay in each game from winning amount.

Sudipta Bhattacharjee, partner, Khaitan & Co, said: "Many smaller start-ups in this segment may still get very badly hit. The problem remains that GST, despite being a tax on the supply of goods/service, is being levied on a value that is much higher than the actual revenue earned by the online gaming platforms for their supply of facilitation services to players.”