Kerala Governor Arif Mohammed Khan on today, January 5 signed an ordinance amending the state GST law concerning gambling. This move comes amidst an ongoing legal tussle between the Kerala government and the Governor over unresolved bills.
The state government introduced this ordinance following the 50th Goods and Services Tax (GST) Council meeting's decision to set a 28 percent GST rate on various forms of gambling, including casinos, horse racing, and online gaming. Additionally, the meeting resolved that the tax should be calculated based on the face value of bets placed. It's important to note that the Union Government recently amended the GST Act, prompting states to make corresponding adjustments.
The backdrop to this decision is the Kerala Government's recent approach to the Supreme Court, citing prolonged delays by the Governor in granting approval to specific bills. Responding to this, Raj Bhavan (the Governor's residence) informed the court of the Governor's intention to refer the contentious bills to the President for further consideration. At present, the Supreme Court is deliberating on the Kerala Government's plea to establish a clear timeframe within which the Governor must decide on pending bills.
Governor Arif Mohammed Khan's endorsement of the ordinance marks a significant development in the state's approach to regulating gaming activities, especially amid ongoing debates and legal challenges concerning pending legislation. The implications of this amendment could potentially shape the future landscape of gambling and online gaming in Kerala.
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