GoM to Finalise GST Rate on Casino, Online Gaming, and Horse Races

The Group of Ministers (GoM) formed on online gaming, horse racing, and casino met at the beginning of this week and agreed not to change the suggested GST rate of 28%. However, the GoM will meet again before submitting the final report to the Council. Also, the sources said that the GoM might issue the final report on August 10, 2022.

The 47th GST Council meeting was held on 28th & 29th June 2022, chaired by finance minister Nirmala Sitharaman. During the Council meeting, the GoM, under Meghalaya Chief Minister, had highlighted that casinos, horse racing, and online gaming would fall under betting and gambling, and 28% GST on gross sales value should be levied.

Further, the GoM recommended that online gaming be taxed at the full value, including the entry fee paid by the player for participation. In the case of racecourses, the GoM suggested that GST be levied on the totalisators’ full value of bets pooled and placed with the bookmakers.

Also, in the case of casinos, the GoM recommended that the tax be levied on a player’s full face value of the coins/chips purchased from the casino. Also, no GST would apply to the value of bets placed in each betting round, including those with winnings in previous rounds.

Also, the Council discussed the changes required in the relevant provisions of the Act related to the GST Appellate Tribunal (GSTAT) to bring conformity with the court’s judgments.

Accordingly, the Council has decided to constitute a GoM to examine the concerns that states raise and other issues. The members of the GoM include ministers from Andhra Pradesh, Goa, Rajasthan, Uttar Pradesh, and Odisha.

The GOM on GSTAT shall recommend necessary amendments required in the GST laws to ensure that the legal provisions maintain the right federal balance and align with the overall objective of uniform taxation within the country.

For any clarifications/feedback on the topic, please contact the writer at dvsr.anjaneyulu@clear.in

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