Finance Minister Suresh Khanna led the bill, categorizing these activities as games of chance despite their skill-based elements according to a Supreme Court ruling.
MLA Samar Pal asked for a complete ban on online gaming, but Khanna stated that the industry’s rapid growth and popularity makes it impractical for the government.
“The state government has thus decided to check it and discourage it through the best possible steps. Imposing higher tax is one such step,” Khanna said according to The Times of India.
The government aims to deter the said activities by implementing higher taxes, raising from the previous 18% GST rate on gross gaming revenue, based on a suggestion by a Group of Ministers (GoM).
The new GST rate came into effect on October 1, but many states haven’t fully implemented it yet. UP has become of one of the 21 states implementing the new GST regime. While many states have passed the bill, a few of the states like J&K, Jharkhand, Rajasthan, Telangana, Kerala, Chhattisgarh, and Punjab have issued ordinances but are yet to pass the bill. The current GST rate is likely to be tweaked as the GST council plans to assess the new GST rate for six months from implementation.