India raises GST on casinos and lotteries to 40% under GST 2.0
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GST 2.0 started on September 22, 2025, with two slabs — 5% and 18% — plus a 40% ‘sin’ rate that includes casinos and lottery.
The shift moves gaming activities historically taxed at 28% into the new 40% band, following the 56th GST Council’s decisions and formal CGST notifications.
How operators and players are likely to be affected
For operators, a 12-point jump in GST materially raises effective tax incidence on gross collections. That pressure may be passed on via higher table fees, rakes, or ticket prices, potentially trimming volumes in price-sensitive segments.
Public-market signals already reflect the squeeze: shares of listed gaming and casino proxies fell after the 40% levy was cleared, underscoring expectations of margin compression and slower growth.
The policy intent and what to watch next
Officials paired broad rate cuts for everyday goods with a higher “demerit” band to protect revenue and deter socially harmful consumption; casinos, betting and lottery sit squarely in that 40% bucket.
Implementation will hinge on clear valuation rules and audit practices for “actionable claims,” plus state-level enforcement. Watch for pass-through to consumer pricing, litigation over classifications, and how gaming hubs like Goa and Sikkim balance tax inflows against tourism competitiveness.
Source: https://www.indiatoday.in/business/story/gst-reforms-today-price-changes-everyday-goods-milk-dairy-sin-ultra-luxury-pm-modi-india-tax-2791115-2025-09-22
