Large multi-utility vehicles like the Toyota Innova Crysta and Hycross, as well as the Maruti Suzuki Invicto will attract compensation cess of 22%, as per the Council's clarification as a vehicle no longer has to be 'popularly known as an SUV' to attract 22% cess as long as it meets a set of criteria related to height, ground clearance and engine capacity. It will also be clarified that ground clearance will be measured in un-laden condition. From this, the reference to SUV is being dropped. The existing definition covers vehicles popularly known as 'sports utility vehicles' in addition to having engine length more than 4000 mm, engine capacity more than 1500 cc and having ground clearance of 170 mm and above. The Council decided to streamline the definition of sports utility vehicles, which attract 22% cess in addition to a 28% GST rate. 'A tax burden where taxes exceed revenues will not only make the online gaming industry unviable but also boost black-market operators at the expense of legitimate tax-paying players, further undermining the industry's image and capacity to survive,' Shukla said in a statement after the Council meeting. Malay Kumar Shukla, Secretary of E-Gaming Federation called the move 'an extremely unfortunate decision as charging a 28% tax on full face value will lead to a nearly 1000% increase in taxation and prove catastrophic for the industry.' However, industry players expressed their concerns. Simply put, online gaming, horse racing and casinos will be taxed at 28% and will be taxed on full face value,' Sitharaman said.Īmendments to GST law will be brought to specify that Tax will be applicable on the face value of the chips purchased in the case of casinos, on the full value of the bets placed with bookmaker/totalisator in the case of horse racing and on the full value of the bets placed in case of the online gaming, an official statement from finance ministry explained.

There will be some amendments to GST law.

'Today I am happy to say we have arrived at a decision. In the case of taxation of online gaiming, horse racing and casinos, a vexed issue on which ministers did extensive consultation, the Council recommended amendments to the law to specify 28% tax on all three on their full face value.

Casino gaming rule