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GST on online gaming yet to be finalised; GoM to submit report in Aug

GST on online gaming yet to be finalised; GoM to submit report in Aug

The report will be submitted by the group before the second week of August, i.e. before the 48th GST Council meeting. 

GST on online gaming yet to be finalised GST on online gaming yet to be finalised

The Group of Ministers (GoM) on online gaming, casinos and horse racing met today to discuss the levying of 28 per cent GST. However, no final decision was taken. 

Sources told Business Today, “GoM had no final decision due to absence of certain members and information from the meeting.” The GoM is likely to meet again by the end of the month. The report will be submitted by the group before the second week of August, i.e. before the 48th GST Council meeting. 

Meanwhile, West Bengal Finance Minister Chandrima Bhattacharya told Business Today that certain legal aspects on this matter have to be examined by law committee and a final decision will be taken after this.

Bhattacharya also added that GST Council has extended the report submission deadline from 15th July to 10th August. GoM on gmaing and casino rate rationalisation will meet physically in New Delhi likely in last week of July.

The group in their meeting last month discussed hiking GST on online gaming, casinos and horse racing by 10 per cent to take it to the highest slab of 28 per cent. However, in the 47th GST Council meeting last month, it was decided that additional time must be given to the GoM to prepare its report. 

It was also decided that the tax will be on the entire face value or bet amount and not on the net amount after deducting the prize money. In case of casinos, the levy should be on the amount paid at the entry point while purchasing chips. As for horse racing, the practice of levying 28 per cent GST was proposed to be continued. 

The state finance ministers group is headed by Conrad Sangma, the chief minister of Meghalaya. The meeting was attended by the finance ministers from Goa, Uttar Pradesh, Gujarat, Tamil Nadu and Maharashtra, and officers from Telangana.

Also read: GST tax on online gaming likely to be finalised today

Published on: Jul 12, 2022, 3:27 PM IST
Posted by: anwesha madhukalya, Jul 12, 2022, 3:25 PM IST