Casinos, on-line gaming: GoM on board for GST hike to twenty-eight%

The Group of Ministers has arrived at consensus of climbing the tax fee to twenty-eight per cent on casinos, race programs and on-line gaming beneath the Goods and Services Tax (GST) regime. The panel has directed the officers to look into the modalities for valuation for levying the tax, after which the ultimate assembly of the panel will happen by mid-May, West Bengal Finance Minister Chandrima Bhattacharya stated.

“There is consensus among states that all these three — online gaming, casinos and horse racing — the highest rate of tax of 28 per cent should be levied. The question now is on what will be the valuation on which the tax will be levied. For this purpose, the financial aspect, the legal aspect will be looked into by the group of officers of the fitment committee and they will be giving a report by 10 days. Then again in mid-May another meeting will be called by the Chairman (of the GoM),” Bhattacharya, who’s a member of the GoM, advised The Indian Express.

The GoM will then finalise the tactic for valuation of those providers. At current, providers of on line casino, horse racing and on-line gaming entice 18 per cent GST.

The authorities had in May final 12 months arrange Group of Ministers for higher valuation of providers of casinos, on-line gaming portals and race programs for levying GST. The phrases of reference for the committee included valuation of providers supplied by casinos, race programs and on-line gaming portals, and taxability of sure transactions in a on line casino bearing in mind the present authorized provisions and orders of courts on associated issues.

The committee was additionally to recommend want for any change within the authorized provisions to undertake higher technique of valuation of the providers of casinos, race course and on-line gaming and affect on different comparable providers like lottery.

The GoM, headed by Meghalaya Chief Minister Conrad Sangma, met on Monday and mentioned the relevant GST fee on these three providers. The report of the GoM is prone to be taken up within the subsequent assembly of the GST Council anticipated later this month.

Other state ministers within the 8-member GoM embody Maharashtra Deputy Chief Minister Ajit Pawar, Gujarat Finance Minister Kanubhai Patel, Goa Panchayati Raj Minister Mauvin Godinho, Tamil Nadu Finance Minister P Thiaga Rajan, Uttar Pradesh Finance Minister Suresh Khanna and Telangana Finance Minister T Harish Rao.