Re-evaluating India’s High GST on Gambling: Balancing Social Responsibility and Economic Growth

This paper delves into the implications of a high rate of GST being imposed on the gambling industry in India, emphasizing the impact on not only the frequency of gambling among the elite but also the tax revenues sourced from foreign visitors who contribute significantly to India’s diverse gambling offerings. Furthermore, this critique of the tax explores how these changes might undermine the tourism sector, erode employment opportunities, and curtail economic development in states reliant on gambling revenue, such as Goa and Sikkim. In the broader context of India’s socioeconomic landscape, it challenges the notion that increasing taxation is inherently beneficial and emphasizes that a welfare state’s fundamental duty is to safeguard and promote the well-being of its citizens, particularly the less privileged. Paradoxically, the decision to raise the GST rate on gambling activities perpetuates and exacerbates the challenges faced by the less affluent, depriving them of essential employment opportunities and developmental prospects that are crucial for economic advancement. This paper aims to shed light on these dynamics and stimulate a discussion on the multifaceted consequences of this recent policy change.