Casinos and online gaming valuation issues will be tackled tomorrow to set a GST rate


The Group of Ministers (GoM) on Casinos, Online Gambling and Horse Racing will meet tomorrow (July 12) to finalize its report addressing concerns over the assessment after the Goa government, which had objected to the recommendations during the proceedings, said the casinos needed different treatment.

The government had set up the panel in May last year for better evaluation of the services of casinos, online gambling portals and racetracks for the collection of Goods and Services Tax (GST).

The GoM, headed by the Chief Minister of Meghalaya, Conrad Sangma, pointed out in its report that horse racing, online gambling or casinos are all part of betting and gambling, and that a GST of 28% should be levied on them. Currently, casino, horse racing and online gaming services are subject to 18% GST.

Bengal stance

West Bengal Finance Minister Chandrima Bhattacharya said Network18 that they will advocate a 28% charge to discourage online gambling. The same will be their proposal for casinos and horse racing.

“We do not want to encourage online gambling. We believe that if practiced, 28% should be levied. We also do not support gambling as it has a negative impact on society and therefore more taxes are better.” said Bhattacharya.

Bengal will present its rationale at tomorrow’s meeting and the state government hopes that this tax will help discourage such activities.

Last month, the GST Board, made up of Central and State finance ministers, asked the GoM to deliberate further and set a July 15 deadline for submission of the final report.

The GoM recommended that online games be taxed at the full value of the consideration, including the contest entry fee paid by the player when participating in the game. In the case of racetracks, the GoM suggested that the GST is levied on the total value of the bets grouped together in the totalisers and placed with the bookmakers.

In casinos, the GoM has recommended that the tax be levied on the total face value of chips/coins purchased from the casino by a player. No further GST would apply to the value of bets placed in each round of betting, including those placed with winnings in previous rounds.

As the Council deliberated on the GoM report at its meeting last week, Goa Industries Minister Mauvin Godinho stressed the need to better understand and detail why casinos require different tax treatment compared to casinos. horse racing and online games.

Other eight-member GoM ministers of state include Maharashtra deputy chief minister Ajit Pawar, Gujarat finance minister Kanubhai Patel, Goa minister panchayati raj Mauvin Godinho, Tamil Nadu finance minister P Thiaga Rajan, Uttar Pradesh Finance Minister Suresh Khanna and Telangana Finance Minister T Harish Rao.

First post: STI


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