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 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. This was the second GoM constituted on the issue.
