GST GoM on casinos and online gaming to meet on Tuesday

Casinos in India
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The ministerial panel on casino, race course and online gaming will meet on July 12, 2022 to finalise its report on taxing these activities, ahead of the Goods and Services Tax (GST) Council meeting in the first week of August. The ministerial panel convened by Meghalaya chief minister Conrad Sangma were asked to submit the final report by July 15

The Council, which recently asked the group of ministers (GoM) to review its report once more, will consider tax rate increase on online skill gaming from 18% to 28% to bring it at par with other activities akin to gambling and taxation issues related to casinos in its next meeting at Madurai.

The GoM in its report presented to the Council on June-28-29 has recommended that in case of online gaming, the activities should be taxed at 28% on the full value of the consideration, by whatever name such consideration may be called including contest entry fee, paid by the player for participation in such games without making a distinction such as games of skill or chance etc.

In case of race courses, it said GST should continue to be levied at the rate of 28% on the full value of bets pooled. In case of casinos, GST be applied at the rate of 28% on full face value of the chips/coins purchased from casino by a player. In case of casinos, once GST is levied on purchase of chips/coins (on face value), no further GST to apply on the 28% value of bets placed in each round of betting including those played with winnings of previous rounds, the GoM has said.

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IE&M Team
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