The 28 per cent goods and services tax (GST) on online gaming and casinos is likely to miss the October 1 implementation date as several states have not passed the legislation nor promulgated an Ordinance.

The GST on gaming, casinos and horse racing, which has faced several challenges at the Group of Ministers’ level and at the GST Council meeting, was opposed by several states. Now, its implementation seems to have struck a roadblock.

The Centre is determined to introduce the GST levy of 28 per cent on online gaming companies from October 1: “We are fully prepared to bring it into effect from October 1,” Sanjay Kumar Agarwal, chairman of the Central Board of Indirect Taxes, told reporters on Thursday on the sidelines of an event organized by Ficci.

The deal that Arun Jaitley negotiated with the states was that all decisions would be taken by consensus.

The 51st GST Council meeting had tentatively agreed on the 28 per cent levy and the Centre rushed through Parliament with two legislations in August. It did not give the states time to pass their own legislation.

So far, around 12 states have passed the legislation, mainly BJP-ruled states. Interestingly, BJP-ruled Uttar Pradesh has not yet passed the legislation so far, industry watchers said.

Sudipta Bhattacharjee, partner, indirect taxes, Khaitan & Co, said the construct of ‘‘one nation, one tax, one market’’ will “completely fall if only the amendments to the Central GST Act are brought into force and the State GST laws remain unamended. It is very unlikely that the new regime will come into effect on October 1.”

Shashi Mathews, partner, Induslaw, said the GST portal cannot operate without a concurrent levy of CGST and State GST.

Payal Thaker, Indirect Tax Partner at BDO India said, “Both the Centre as well as the said states are yet to notify the dates from which the amendments shall be made effective.”

“Parliament passed bills to change the GST laws on September 6, 2023. But, for these changes to apply, each state must also pass its laws.

“If any state doesn’t do this, it could create problems because that state won’t be able to collect the increased GST rate on certain supplies,” said Navjot Singh, principal advisor — customs, foreign trade policy and GST at TaxTru.

With inputs from Calcutta Bureau