GST council to decide on taxation of Online Betting, Casinos in September
Government is going to add tax on online betting, gaming in this ongoing year. Th☂e Goods and Service Tax (GST) authority will start taking 28% GST from this month instead of September in Online gaming, Casinos etc. The actual reason behind this sudden action is that a group of ministers is currently rectifying these activities and they are yet to submit their report.
Meanwhi🅘le, an additional GoM who are assigned with building recommendations on setting up GST tribunals in each state will hold some time to conclude their report, sources told FE.
The panel of 𓆏the minister is going to meet on July 23 and 24 on an event in Goa to understand the industrial point of view on taxation of Casinos, race courses and online gaming.
As reported by financial express, an official said,“A final meeting of this GoM is expected after August 15 to finalise it🧜s report🔜,”, the GoM has been given time till August 10 to announce their final report.
In the first draft of that report, The GoM advised that the Online Gaming venture should be taxed at 28% in the full value, contest entry fee or paying for player's participation in such contests of skill or chance. Since GST is added on network skill-based games at 18% right now platform fee (about 20% of the contest fee), the amo🌟unt of tax in the gaming industry is going to rise.
And for race courses, the GoM proposed tha𝐆t GST should continue to be levied at the rate of 28% on the full value of bets pooled in totalisator and placed with bookmakers. On condition of casinos, GST should be added at the rate of 28% on how much of the chips/ coins purchased by a player. Once this is imposed, no further GST should apply on the value of bets placed in each round, including those played with the winnings of previous rounds, the GoM added.
Alsℱo there will be no tax imposed upon betting in case of chips won throughout a contest in a casino is sཧeen as a sort of compromise, which is not accessible to players who are in lotteries.
The GoM convened by Meghalaya chief minister Conrad Sangma, was asked to reconsider the rules and amount of taxation in casinos, racing and online gaming in a meeting in Chandigarh on June 29. This is the reason behind the appeal from Goa for getting better perception andꦫ differential treatment of casinos. They stated that the money which they generate from token purchase, one of it’s part is used for the foods, beverage and entertainm🐈ent.
