Online gaming

GoM on Casinos and Online Gaming to submit report to FM in 1-2 days: report

A panel of state finance ministers on the taxation of online casinos and gambling is expected to submit its report to Finance Minister Nirmala Sitharaman within a day or two, government sources said Thursday.

The GST Council is expected to meet towards the end of this month or early September and discuss the report of the Group of Ministers (GoM), the sources added.

The GoM, under the Chief Minister of Meghalaya, Conrad Sangma, had in an earlier report proposed to the GST Board to levy 28% GST on the gross value of sales, as horse racing, gambling in online and casinos are akin to betting or gambling.

However, since Goa wanted further discussions regarding casinos, the GST Council, comprising the Union Finance Minister and his state counterparts, suggested that the GoM hold further discussions and submit a final report by July 15.

Government sources said the GoM would submit its report to the finance minister within a day or two.

GoM members also met with industry stakeholders late last month to hear their concerns.

In the report submitted to the Council last month, the GoM had recommended that online games be taxed at the full value of the consideration, including the competition entry fee paid by a player for participating in the game.

In the case of racetracks, the GoM had suggested that GST be levied on the total value of bets aggregated in totalizers and placed with bookmakers.

With regard to casinos, the GoM had recommended that the tax be levied on the total face value of chips/coins purchased from a casino by a player. No further GST would apply to the value of bets placed in each round of betting, including those placed with winnings in previous rounds.

Other finance ministers in the eight-member GoM state are Suresh Khanna (Uttar Pradesh), Kanubhai Patel (Gujarat), P Thiaga Rajan (Tamil Nadu) and T Harish Rao (Telangana).

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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