The Karnataka government has issued an ordinance to amend the Karnataka Goods and Services Tax Act, enabling the imposition of a 28% Goods and Services Tax (GST) on online gaming, racecourses, and casinos. The move, approved by Governor Thawarchand Gehlot, is expected to generate approximately Rs 1,500 crore in revenue for the state.
Karnataka is one of several major states to enact this ordinance following Maharashtra and Haryana, in preparation for the Central government’s proposed implementation of the tax regime from October 1. Importantly, the new legislation does not affect existing laws and does not regulate or restrict betting activities, which will continue to be subject to criminal prosecution. The Central government had directed states to pass the ordinance by September 30 to implement the 28% GST on online gaming from October 1.