Home / News / India /  GST Council may approve 28% rate on online games, casinos, race courses

GST Council may approve 28% rate on online games, casinos, race courses

GST authorities have nabbed an alleged mastermind over fraudulent availment and utilisation of input tax credit to the tune of  ₹90.68 crores (HT_PRINT)Premium
GST authorities have nabbed an alleged mastermind over fraudulent availment and utilisation of input tax credit to the tune of 90.68 crores (HT_PRINT)

  • The panel has recommended that a 28% GST should apply on the entry fee and on the value of the chips or coins purchased at a casino, but not on individual bets placed by the player.

New Delhi: The GST Council, in its two-day meeting beginning Tuesday, is likely to clarify that 28% rate could apply to casinos, online games, and race courses, and specify the transaction value on which a proposed 28% tax would apply, bringing much-needed clarity on the taxation in these sectors.

The Council will take up the report submitted by the Group of Ministers led by Meghalaya chief minister Conrad Sangma during the two-day meet in Chandigarh.

The panel has recommended that a 28% GST should apply on the entry fee and on the value of the chips or coins purchased at a casino, but not on individual bets placed by the player. In the case of online gaming, a 28% rate should apply on the full value of the consideration paid by the player for participation, according to the proposal.

The panel has recommended that a 28% GST should be levied on casinos, online games and race courses without any regard for whether it is a game of skill or chance or both. Industry players have been paying 18% GST in many cases, backed by court orders.

The panel also suggested that once GST is levied on the purchase of coins or chips at casinos, no further GST should be levied on the value of bets placed on each round of bets.

Other members of the GoM include Maharashtra Deputy Chief Minister Ajit Pawar, West Bengal Finance Minister Chandrima Bhattacharya, Gujarat Finance Minister Kanubhai Patel, Goa Transport and Panchayati Raj Minister Mauvin Godinho, Tamil Nadu Finance Minister Palanivel Thiaga Rajan, Uttar Pradesh Finance Minister Suresh Kumar Khanna and Telangana Finance Minister Thanneeru Harish Rao.The terms of reference included examining the issue of valuation of services, taxability of certain transactions in a casino, etc.

This was the second GoM constituted on the issue.

ABOUT THE AUTHOR

Dilasha Seth

" Dilasha Seth is a journalist reporting on macroeconomic policy for the last 11 years. She writes extensively on issues including international trade, macroeconomic data, fiscal policy, and taxation. At Mint, she reports on trade deals that India is signing besides key policy decisions of the Ministry of Finance. She closely tracked and covered the transition to the goods and services tax (GST) regime in 2017 and also writes on direct tax-related issues. In the past, she has worked with Business Standard and The Economic Times. She is based in Bangalore."
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